1.  The Company has allotted bonus shares on 13th April, 2010 in the
 ratio of one equity share for every one equity share of Rs. 10/- each
 held in the Company on the Record Date. The Basic and Diluted EPS has
 been calculated for all periods presented after taking into account the
 bonus issue.
 
 2.  Estimated amount of contracts (net of advances) remaining to be
 executed on capital account and not provided for Rs. 7.47 Crores (2009
 : Rs. 2.41 Crores).
 
 3.  Contingent Liabilities not provided for in the accounts :
 
                                31st December,   31st December,
                                    2010           2009
                                    Rupees         Rupees
                                   in Crores     in Crores
 
 (a) Guarantees and Counter 
 Guarantees given by the Company      34.45        6.68
 
 (b) Excise/Sales Tax Demands made 
 by the authorities, in respect of 
 which appeals have been filed        19.81       18.07
 
 (c) Claims against the Company not 
 acknowledged as debts estimated at :
 
 (i) Income Tax                         -         1.17
 
 (ii) In respect of Third Parties - 
 Miscellaneous                         1.63       1.43
 
 Future cash outflows in respect of (b) above are determinable only on
 receipt of judgements/decisions pending with various
 forums/authorities.
 
 4.  (a) The Company had received in prior years, show cause notices
 from Excise Authorities in respect of input and Finished Goods stock
 differences at some of its plants aggregating to Rs. 18.30 Crores (2009
 : Rs. 18.30 Crores). There have been three orders in favour of the
 Company though department has filed appeals against two of them. The
 orders were passed upholding the Companys contention that the stock
 differences have been almost fully reconciled/explained. The pending
 demands on account of stock differences aggregate to Rs. 4.66 Crores
 (2009 : Rs. 4.96 Crores) including the amounts involved in the cases
 where department has filed appeals. Considering that favourable orders
 have been received setting out a ratio that minor differences are
 condonable, the demands at other plants are also likely to be
 eventually dropped.  The Company has also obtained legal opinions which
 concur with this view. However, as a matter of abundant caution, the
 Company has upto date made a provision of Rs. 0.47 Crore and payments
 of Rs. 1.40 Crores relating to excise cases of stock differences as on
 31st December, 2010.
 
 (b) Certain disputed demand notices relating to Indirect Taxes
 amounting to Rs. 106.74 Crores (2009 : Rs. 100.50 Crores) have neither
 been considered as contingent liabilities nor acknowledged as claims,
 based on expert legal opinions obtained/ internal assessment. The
 Company is of the view that the possibility of the demands
 materialising is remote.
 
 5.  A shareholder of the Company had filed a Public Interest Petition
 in the Delhi High Court interalia challenging the allotment of
 3,537,862 equity shares on Preferential basis to Castrol Ltd., UK. The
 said Petition has been dismissed by the Delhi High Court on 11th
 January, 2005. However, the Shareholder has gone to appeal by way of a
 Special Leave Petition to the Supreme Court of India. The Appeal has
 been admitted but no interim relief has been granted.
 
 6.  Segment Information :
 
 The business segment has been considered as the primary segment. The
 Company is organised into two business segments, Automotive &
 Non-Automotive.
 
 The above business segments have been identified considering :
 
 - The customers
 
 - The differing risks and returns
 
 - The organisation structure
 
 - The internal financial reporting system
 
 Segment revenue, results, assets and liabilities have been accounted
 for on the basis of their relationship to the operating activities of
 the segment and amounts allocated on a reasonable basis.
 
 7.  Employee Benefits :
 
 General Description of Defined Benefit Plan
 
 Gratuity
 
 The Company operates Gratuity plan wherein every employee is entitled
 to the benefit equivalent to fifteen days/one month salary last drawn
 for each completed year of service depending on the date of joining.
 The same is payable on termination of service, or retirement, whichever
 is earlier. The benefit vests after five years of continuous service.
 
 Provident Fund
 
 The Company manages Provident Fund plan through a Provident Fund Trust
 for its employees which is permitted under The Employees Provident
 Fund and Miscellaneous Provisions Act, 1952. The plan envisages
 contribution by employer and employees and guarantees interest at the
 rate notified by the Provident Fund Authority. The contribution by
 employer and employee, together with interest, are payable at the time
 of separation from service or retirement, whichever is earlier.
 
 The benefit under this plan vests immediately on rendering of service.
 
 Survivor Protection Scheme
 
 The Company provides an exgratia payment to the employees
 family/survivors over and above any survivor benefits payable to the
 employee under the retirement schemes, in the unfortunate event of an
 employee dying whilst in service.
 
 A.  Amounts recognised as an expense : (i) Defined Benefit Plan
 
 Gratuity in Schedule J includes gratuity cost of Rs. 4.77 Crores (2009
 : Rs. 0.91 Crore) (net of recoveries of Rs. 0.21 Crore (2009 : Nil)
 towards employees on secondment from group companies). Contribution to
 Provident and Other Funds in Schedule J includes Rs. 3.93 Crores (2009
 : Rs. 2.93 Crores) for Provident Fund.  Salaries, wages and bonus in
 Schedule J includes Leave encashment, survivor protection (death
 benefit), pension benefit to past employees, Rs. 0.15 Crore (2009 : Rs.
 0.36 Crore).
 
 (ii) Defined Contribution Plan
 
 Contribution to Provident and Other Funds in Schedule J includes Rs.
 4.90 Crores (2009 : Rs. 4.63 Crores) for Pension Fund, ESIC and Labour
 Welfare Fund and Insurance includes Rs. 1.15 Crores (2009 : Rs. 0.81
 Crore) for Medical Insurance benefits and post retiral medical benefit
 scheme. Salaries, wages and bonus in Schedule J includes Rs. 0.93 Crore
 (2009 : Rs. 1.09 Crores) for Share Match.
 
 B.  Basis used to determine expected rate of return on assets :
 
 The major portion of the assets are invested in debt instruments.
 Expected rate of return on investments for all defined benefit plans is
 determined based on the assessment made by the Company at the beginning
 of the year on the return expected on its existing portfolio since
 these are generally held to maturity, along with the estimated
 incremental investments to be made during the year. Expected rate of
 return on plan assets is 8% (2009 : 8%).
 
 8.  Related Party Disclosures :
 
 A.  Name of the related party and nature of relationship where control
 exists :
 
 (a) Holding Companies
 
 Castrol Ltd., U.K. (Holding Company of Castrol India Ltd.)
 
 Burmah Castrol Holdings Ltd. (Holding Company of Castrol Ltd., U.K.)
 
 BP PLC (Holding Company of Burmah Castrol Holdings Ltd.)
 
 (b) Other Related Parties
 
 (where transaction exists)
 
 Arabian Prod. & Marketing Lub. Co. Ltd.
 
 Aspac Lubricants (Malaysia) Sdn Bhd
 
 Aspac Lubricants Malaysia
 
 BP China Aspac HKD Lub.
 
 BP France
 
 BP (China) Industrial Lubricants Ltd.
 
 BP Alternative Energy International Ltd.
 
 BP Australia Pty Ltd.
 
 BP Castrol (Thailand) Ltd.
 
 BP Castrol KK
 
 BP Castrol Lubricants (Malaysia) SDN
 
 BP China Holding Ltd.
 
 BP Corporation NA Inc.
 
 BP Egypt Company
 
 BP Egypt Oil (335 GUPCO)
 
 BP Energy India Pvt. Ltd.
 
 BP Europa SE
 
 BP Europa SE - BP Belgium (Branch)
 
 BP Exploration (Alpha) Ltd. - CBM India
 
 BP Exploration (Alpha) Ltd.
 
 BP Exploration (In Salah) Ltd.
 
 BP France SA Branch Office
 
 (Trading as BP Middle East) BP India Services Pvt. Ltd.  BP
 International Ltd.  BP Italia SPA
 
 BP Japan KK BP Korea Limited BP Lub. Shanghai SIBU BP Lubricants USA,
 Inc.  BP Marine Ltd.  BP Mauritius Ltd.  BP Middle East BP Oil Head
 Office BP Oil International Ltd.  BP Oil UK Ltd.  BP Shipping Ltd.  BP
 Singapore - LSC Regional BP Singapore Marine BP Singapore Pte. Ltd.  BP
 Singapore Spec Ind. Lubes BP South Africa BP South West Pacific Limited
 BP S. W. Pacific OAZ BP Southern Africa (Proprietary) Limited BP
 Turkiya OEU BPOI - 1ST HO Costs BPSA Lubes
 
 Burmah Castrol Australia PTY Ltd.  Castrol (Shenzhen) Co. Ltd.  Castrol
 (Shenzhen) Company Ltd.  (Shanghai Branch)
 
 (b) Other Related Parties (where transaction exists) (Contd.)
 
 Castrol (UK) Ltd.
 
 Castrol Australia Pte. Ltd.
 
 Castrol Austria AG
 
 Castrol Austria GmbH
 
 Castrol BP Petco Ltd.
 
 Castrol BP Petco Limited Liability Company
 
 Castrol Industrial North America Inc.
 
 Castrol Ltd. UK.
 
 Castrol Offshore
 
 Castrol Pakistan Private Ltd.
 
 Deutsche BP
 
 Deutsche BP AG
 
 First Energy India Limited
 
 Lubricants UK Ltd.
 
 Nordic Lubricants AB
 
 Nordic Lubricants AS
 
 Premier Lubes Aspac Ltd.
 
 Premier Lubricants (S) Pte. Ltd.
 
 PT Castrol Indonesia
 
 Tata BP Solar India Ltd.
 
 (c) Associates (where transaction exists)
 
 Castrol India Ltd. Employees Provident Fund Castrol India Ltd. Staff
 Pension Fund Castrol India Ltd. Employees Gratuity Fund
 
 (d) Key Management Personnel (where transaction exists)
 
 N. K. Kshatriya Managing Director Upto 8th May, 2009
 
 R. Kirpalani Director-Automotive From 8th May, 2009
 
 & Chief Operating
 
 Officer
 
 A. S. Ramchander Executive Director Upto 30th April, 2009
 
 A. P. Mehta Executive Director Upto 15th November, 2010
 
 S. Vaidya Executive Director From 16th November, 2010
 
 S. Malekar Executive Director From 1 st May, 2008
 
 15.  Research and Development expenses amounting to Rs. 8.02 Crores
 (Net) (2009 : Rs. 8.26 Crores) are included under relevant heads of
 expense.
 
 9.  Previous years figures have been regrouped wherever necessary.