I.Interest in Joint Venture
 
 a) The Company does not have a subsidiary and is not required to
 present consolidated financial statements under Accounting Standard 21
 - Consolidated Financial Statements prescribed by the Companies
 (Accounting Standards) Rules, 2006 (as amended). Interest in Joint-
 venture has been accounted for as a long term investment in these
 financial statements. The details as per Accounting Standard 27 -
 Financial Reporting of Interest in Joint Ventures as prescribed by
 the Companies (Accounting Standards) Rules, 2006 (as amended) are
 disclosed regarding the assets, liabilities, income and expenses of the
 joint venture company as additional information to the users of the
 financial statements.
 
 c) Estimated Capital commitments (net of advance) not provided for Rs.
 Nil (Previous Year Rs. Nil).
 
 d) Contingent Liabilities not provided for Rs. Nil (Previous Year Rs.
 Nil).
 
 e) Company''s transactions with Belloxy, being a related party, during
 the year ended 31 December 2011 are disclosed in Note (XXIII.) below.
 
 II. Estimated Capital commitments (net of advance) not provided for Rs.
 536.24 million (Previous Year Rs. 2,201.08 million).
 
 III. Contingent Liabilities not provided for:
 
                                     Year ended        Year ended
 in rupees million                   31 Dec. 2011      31 Dec. 2010
 
 Excise Duty & Service tax matters*    37.92              32.09
 
 Other Excise matters**                  -                 -
 
 Sales tax matters*                    31.93              35.91
 
 Guarantee given by the Company       308.02             420.82
 
 Sales tax liability transferred 
 to a beneficiary***                   27.60              27.60
 
 Bills Discounted                      11.65              12.31
 
 Other claims                          19.65              22.64
 
 * Excludes disputed matters in view of favourable appellate decisions
 on similar issues.
 
 ** Cryogenic vessels for gases were cleared from one factory for
 captive installation at to the other factory of the Company.  The
 Company is contesting the Department''s allegation that the assessable
 value of such inter unit transfer was not calculated as per the
 principles of Cost Accounting Standards-4 (CAS-4). As per the view of
 the management based on the facts of the case and document available,
 the liability would not devolve on the Company.
 
 *** Pursuant to an approved scheme of Government of Maharashtra,
 certain Sales Tax Liabilities of the Company had been transferred to an
 eligible beneficiary, at a discount, for which a bank guarantee had
 been provided by the beneficiary to ensure timely payment to the
 concerned authorities.
 
 IV. Loans and Advances recoverable in cash or in kind or for value to be
 received in Schedule 11 includes:
 
 a) Rs. 3.04 million (Previous Year Rs. 1.10 million) being interest
 free loans (car loan, furniture loan and education loan) to various
 employees which are recovered from their remuneration in accordance
 with relevant repayment schedule contained in the relevant
 schemes/specific approvals.
 
 b) Rs. 250.00 million (Previous Year Rs. 250.00 million) being long
 term advance to a Joint Venture Company [Also refer note (XXIII.)
 below] for purchase of gases in future.
 
 Notes
 
 a) The expected rate of return on plan assets is based on the current
 portfolio of assets, investment strategy and market scenario. In order
 to protect capital and optimise returns within acceptable risk
 parameters, the plan assets are well diversified.
 
 b) The discount rate is based on the prevailing market yield on
 Government Securities as at the balance sheet date for the estimated
 terms of obligation.
 
 c) The Pension Expenses and Gratuity Expenses have been recognised in
 Provident Fund and Employee Benefit Expenses under Schedule 16 to the
 Profit and Loss Account.
 
 d) The estimates of future salary increases, considered in actuarial
 valuations take account of inflation, seniority, promotion and other
 relevant factors such as supply and demand factors in the employment
 market.
 
 V. Prepaid expenses in Schedule 10 include Rs. 9.00 (Previous Year Rs.
 10.54) towards rent adjustable over a period of 20 years from April
 1998.
 
 VI. a) Certain plant and machineries have been made available by the
 Company to the customers under a finance lease arrangement. Such assets
 given under a finance lease arrangement have been recognised, at the
 inception of the lease, as a receivable at an amount equal to the net
 investment in the lease. The finance income arising from the lease is
 being allocated based on a pattern reflecting constant periodic return
 on the net investment in the lease.
 
 b) Details with respect to the above leased asset under finance lease
 arrangements in accordance with Accounting Standard 19 -Leases as
 prescribed by the Companies (Accounting Standards) Rules, 2006 (as
 amended).
 
 VII. Company has taken various residential and office premises under
 operating lease or leave and license agreements. These agreements are
 for a period of 11 months to 3 years, cancelable during the life of the
 contract at the option of both the parties and do not contain
 stipulation for increase in lease rentals. Minimum lease payment
 charged during the year to the profit and loss account aggregated to
 Rs. 51.29 million (Previous Year Rs. 20.25 million).
 
 a) Provision for Liquidated damages
 
 Liquidated damages are provided based on contractual terms when the
 delivery/commissioning dates of an individual project have exceeded or
 are likely to exceed the delivery/commissioning dates and/or on the
 deviation in contractual performance as per the respective contracts.
 This expenditure is expected to be incurred over the respective
 contractual terms upto closure of the contract (including warranty
 period).
 
 Estimated amount of Liquidated Damages (LD) for the Project Engineering
 division have been reduced from contract revenue on contracts which are
 currently in progress. Such LDs were recorded as a charge to Profit and
 Loss Account till previous year. Accordingly provision for LD on such
 contracts has been reversed and recorded as prior period adjustment
 under liabilities written-back with appropriate adjustment to gross
 sales and billing in excess over cost and profit for the year
 aggregating to Rs 125.04 million. The above treatment does not have any
 impact on the profit after tax for the year.
 
 b) Provision for warranty
 
 Warranty costs are provided based on a technical estimate of the costs
 required to be incurred for repairs, replacement, material cost,
 servicing and past experience in respect of warranty costs. It is
 expected that this expenditure will be incurred over the contractual
 warranty period.
 
 c) Provision for Contingencies
 
 Provision is towards known contractual obligation, litigation cases and
 pending assessments in respect of taxes, duties and other levies in
 respect of which management believes that there are present obligations
 and the settlement of such obligations are expected to result in
 outflow of resources, to the extent provided for.
 
 VIII. Information in accordance with the requirements of the Revised
 Accounting Standard 7 on Construction Contracts as prescribed by the
 Companies (Accounting Standards) Rules, 2006 (as amended).
 
 IX. Provision for taxation has been recognised with reference to the
 taxable profit for the year ended 31 December 2011 in accordance with
 the provision of the Income tax Act, 1961. The ultimate tax liability
 for the assessment year 2012 - 2013 will be determined on the basis of
 total income for the year ending on 31 March 2012.
 
 X.  The Company has established a comprehensive system of maintenance
 of information and documents as required by the transfer pricing
 legislation under Sections 92 - 92F of the Income-tax Act, 1961. The
 management is of the opinion that its international transactions are at
 arm''s length so that the aforesaid legislation will not have any impact
 on the financial statements, particularly on the amount of tax expense
 and that of provision for taxation.
 
 XI.As explained in note (I.) n) above, the Company has designated
 principal and interest swap contracts with a bank as hedges of foreign
 currency borrowing facilities aggregating Euro 122.00 million (previous
 year Euro 122.00 million) equivalent to Rs. 7,808.97 million (previous
 year Rs.  7,808.97 million) available to the Company at variable
 interest rates based on LIBOR.
 
 Rs. 386.27 million (net of deferred tax Rs. 185.52 million) [Previous
 Year Rs.  244.61 million (net of deferred tax Rs. 121.68 million)]
 being the translation loss on foreign currency borrowings drawn down
 till the year-end and Rs.  397.22 million (net of deferred tax Rs.
 190.78 million) [Previous Year Rs.  472.83 million (net of deferred tax
 Rs. 235.21 million)] being the portion of gain arising from changes in
 fair values of the aforesaid swap contracts that are determined to be
 effective hedge of the aforesaid foreign currency borrowing facilities
 at variable interest and the related hedged transaction expected to
 occur in future have been recognized in Translation and Hedging Reserve
 in Shareholders'' Funds.
 
 Further, the translation gain on the forward covers for firm
 commitments which are determined to be effective hedge of foreign
 currency payables aggregating to Rs. 8.57 million (net of deferred tax
 Rs. 4.12 million) [Previous Year Rs. 153.62 million (net of deferred
 tax Rs. 76.42 million)] has been recognised in translation & hedging
 reserve in shareholders'' funds.
 
 XII.  Segment information in accordance with Accounting Standard 17
 prescribed by the Companies (Accounting Standards) Rule, 2006 (as
 amended).
 
 a) Determination of segment information is based on the organisational
 and management structure of the Company and its internal financial
 reporting system. The Company business segments namely Gases and
 Related Products and Project Engineering have been considered as
 primary segments for reporting format. Segment revenue, results, assets
 and liabilities include the respective amounts that are directly
 attributable to or can be allocated on a reasonable basis to each of
 the segments. Revenue, expenses, assets and liabilities which relate to
 the enterprise as a whole and are neither attributable to nor can be
 allocated on a reasonable basis to each of the segments, have been
 disclosed as unallowable.
 
 b) The Company operates predominantly within the geographical limits of
 India, accordingly secondary segments have not been considered.
 
 c) Inter-segment revenue has been recognised at cost.
 
 XIII. Information in accordance with the requirements of Accounting
 Standard 18 on Related Party Disclosures prescribed by the Companies
 (Accounting Standards) Rules, 2006 (as amended).
 
 1.  List of Related Parties
 
 a) Ultimate Holding Company (entity having control over the Company)
 Linde AG, Germany
 
 b) Holding Company (entity having control over the Company)
 
 The BOC Group Limited, United Kingdom
 
 (Wholly owned Subsidiary of Linde AG)
 
 XIV. Expenses are net of reimbursement received aggregating Rs. 53.21
 million (Previous Year Rs. 39.96 million)
 
 XV.  Amount aggregating to Rs. 51.89 million reported in the cash
 flow statement for the year ended 31 December 2011, under Trade
 payables as at 31 December 2010, requires regrouping to Liabilities
 no longer required written back to confirm to the current year''s
 classification.