Amara Raja Batteries

1.  a) The Companys land, building, plant and machinery, equipment,
 vehicles (other than those which are specifically hypothecated to HDFC
 Bank) both present and future have been placed as security under a pari
 passu charge for the term loans obtained by the Company from IDBI,
 IFCI, ICICI, State Bank of India, Andhra Bank and IREDA. All the said
 loans have been repaid in full. During the year the Company has
 obtained no due and no objection certificate from IFCI after having
 settled its dues, and has initiated the process of filing satisfaction
 of charge with the Registrar of Companies, Andhra Pradesh.
 
 b) The rupee term loans from Citi Bank N.A and The Bank of Nova Scotia,
 and the foreign currency term loan from BNP Paribas are secured by
 subservient pari passu first charge on all fixed assets both present
 and future.
 
 c) The working capital facilities from State Bank of India, State Bank
 of Hyderabad, Andhra Bank and the Bank of Nova Scotia are secured by
 hypothecation of stock of raw materials, work-in-process, finished
 goods, stores & spares, bills receivable and book debts. The fixed
 assets of the Company are provided as collateral security by way of
 pari passu second charge for the working capital facilities availed
 from State Bank of India and Andhra Bank.
 
 2.  The Company is availing the Sales Tax Deferment benefit since
 1997-98 on its expanded capacity. Such Deferment claimed, as on March
 31, 2009 is Rs. 567.43 Mn (PY Rs. 454.72 Mn) This amount is subject to
 revision by the Assessment Authorities, consequent to the decision of
 Honourable High Court of Andhra Pradesh in favour of the Company.
 
 3.  A sum of Rs. 22.03 Mn has been shown as monies recoverable in the
 Deposits recoverable account as dues from Govt, of India on account
 of excess customs duties paid in connection with import of battery
 separators during the period March 2006 to January 2008.
 
 4.  During the year Andhra Pradesh Southern Power Distribution Company
 Limited (APSPDCL) has demanded Rs. 25.08 Mn as low voltage surcharge
 for the period from June 2005 to November 2007. The Company has created
 liability for an equal amount in the accounts and has preferred an
 appeal contesting the entire demand.
 
 5.  Contingent Liabilities                             (Rs. Million)
 
 a.  Claims against the Company not 
 admitted towards                          31.03.2009      31.03.2008
 
 - Excise Duty                                7.56      Nil
 
 -SaLES Tax                                  19.57     30.27
 -Electricity                               106.61     88.78
 [Against all the above, Rs. 6.33 Mn 
 (PY 7.44 Mn) was paid under protest]                               
 
 b.Counter guarantees given to banks in respect 
 of bank                                    251.22    214.73
 guarantees issued in favour of various constituents.
 
 c. Letters of Credit opened with banks     234.59     20.05
 d. Bills discounted with Scheduied Banks    62.92     58.66
 e. Estimated amount of contracts remaining to be
 executed on capital accounts, not          203.78    386.73
    provided for
 f. Bank Guarantees provided to APGPCL for 
    differential wheeling charges
    pending disposal of the case by Supreme 
    Court not provided for                    4.32      4.32
 
 6.  The Company is engaged in the manufacture of lead acid storage
 batteries. In the perception of the management, identifying the
 Companys business into further segments as per Accounting Standard -
 17, does not arise.
 
 7.  Related Party Transactions
 
 Related parties particulars pursuant to Accounting Standard -18 A.
 List of Related Parties
 
 1.  Key Management Personnel
 
 Mr. Jayadev Galla
 
 2.  Relatives of Key Management Personnel
 
 Dr. Ramachandra N Galla             Father of Mr. Jayadev Galla
 Mrs. G. Amara Kumari                Mother of Mr. Jayadev Galla
 Mrs. G. Padmavathi                  Wife of Mr. Jayadev Galla
 Dr. G. Ramadevi                     Sister of Mr. Jayadev Galla
 Master. Ashok Galla                 Son of Mr. Jayadev Galla
 Master. Siddharth Galla             Son of Mr. Jayadev Galla
 
 3.  Enterprises in which Key Management Personnel and / or their
 relatives have Significant influence
 
 M/s. Amara Raja Power Systems Limited
 M/s. Amara Raja Electronics Limited
 M/s. Mangal Precision Products Limited
 M/s. Galla Foods Limited.
 M/s. Amara Raja Infra Private Limited
 M/s. Amaron Batteries Private Limited
 
 4.  Enterprise with substantial interest
 
 M/s. Johnson Controls Mauritius Pvt. Limited, Mauritius
 
 8.  The balances in various personal accounts are subject to
 confirmation by and reconciliation with the concerned parties.
 
 9.  In the opinion of the Board of Directors the current assets, loans
 and advances are expected to realise the value stated in the accounts,
 in the ordinary course of business.
 
 10.  Previous year figures have been regrouped wherever necessary to
 conform to the current years classification.
 
 11.  Figures have been rounded off to the nearest thousands and rupees
 wherever it is mentioned in Million and Rupees respectively.