1.  Contingent Liabilities:
 
 a) Claims against the company not acknowledged as debts Rs. 2971.77
 Lakhs (2010: Rs. 2969.46 Lakhs).  These mainly include:
 
 i) Rs. 201.72 Lakhs (2010: Rs. 330.36 Lakhs) being the demands raised by
 Central Excise authorities.  
 
 ii) Rs. 1270.79 Lakhs (2010: Rs. 1276.09 Lakhs) in respect of Sales Tax
 demands.
 
 iii) Rs. 229.45 Lakhs (2010: Rs.  188.21 Lakhs) in respect of Income Tax
 demands.
 
 iv) Rs. 811.21 Lakhs (2010: Rs. 769.56 Lakhs) relating to projects.
 
 b) Interest/Penalty, if any, unascertainable, on the above claims is
 not considered.
 
 c) Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for Rs. 74183.00 Lakhs (2010: Rs. 117325.87
 Lakhs).
 
 2.  Thirty four acres and forty nine cents of land has been taken on
 lease from a trust on a five-year renewable lease for the construction
 of Employees Township at Cauvery Basin Refinery.
 
 3.  Forty-one acres of land of the company is in the possession of IOT
 Infrastructure & Energy Services Limited under a lease agreement.
 
 4.  Change in Acounting policy of the company with regard to capital
 expenditure on assets, on which the ownership and control that does not
 vest with the company are charged to revenue in the year in which it is
 incurred (Policy No.2.4(c)). This has no impact on the profits for the
 year as no such expenditure has been incurred during the year.
 
 5.  (a) The cost of land includes provisional payments towards cost,
 compensation, and other accounts for which detailed accounts are yet to
 be received from the authorities concerned.
 
 (b) Pending completion of formalities, assignment deeds of some portion
 of the land are yet to be obtained.
 
 (c) Pending decision of the Government/Court, additional compensation,
 if any, payable to the landowners and the Government for certain lands
 acquired, is not considered.
 
 6.  The company, in the absence of suitable notification by the Central
 Government specifying the applicable rate of cess under section 441A of
 the Companies Act, 1956 on turnover payable by the company, has not
 provided for cess towards formation of Rehabilitation and Revival Fund.
 
 7.  Valuation of Finished Products:
 
 The overall gross margin percentage for all joint products is
 subtracted from the final net realisable value of each product to
 arrive at the total cost of each product which is taken as the basis
 for valuation of closing stock of finished products. (Refer policy no 7
 (c) in Schedule – Q – Statement of Significant Accounting Policies).
 
 8.  In line with the scheme formulated by the Petroleum Planning and
 Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas,
 the company has received an aggregate discount of Rs. 82439.51 Lakhs
 (2010: Rs. 58738.21 Lakhs) from Oil and Natural Gas Corporation Limited
 on Crude Oil purchase and has passed on the same as discounts on
 products sold to Indian Oil Corporation Limited. Accordingly, Gross
 Sales and Consumption of Raw Materials for the year are net of Rs.
 82439.51 Lakhs. (2010: Rs. 58738.21 Lakhs).
 
 9.  The Company has an export obligation to the extent of Rs.19473.58
 Lakhs (2010: Rs.1715.11 Lakhs) on account of concessional rate of
 customs duty availed under EPCG scheme on import of capital
 goods/Advance License scheme on import of crude oil.
 
 10.  a) Payments to and provisions for employees includes Rs. 983.17
 Lakhs for the current year for Non-Supervisory employees (2010:
 Rs.3066.83 Lakhs for the period 01.01.2009 to 31.03.2010 for
 Non-Supervisory employees) towards estimated provision pending
 finalisation of wage revision.
 
 b) Additionally, a sum of Rs.768.00 Lakhs (2010: Rs.1700.05 Lakhs) is
 accounted during the year towards estimated provision in respect of
 increased retirement benefits in line with DPE guidelines.
 
 11.  The company operates in a single segment viz. downstream petroleum
 sector. As such reporting is done on a single segment basis.
 
 12.  The company has not entered into any derivative transaction, other
 than for hedging purposes during the year.  88 Forward contracts
 entered into for hedging purposes by the company and outstanding as on
 31st March 2011 towards repayment of foreign currency loan is USD
 212.75 Million amounting to Rs. 97555.38 Lakhs (2010: Rs. 84405.96 Lakhs;
 USD 187.99 Million)
 
 13.  Foreign currency exposures that are not hedged as on 31st March
 2011: Rs.64224 Lakhs (2010: Rs. 75818.75 Lakhs).
 
 14.  Disclosure as required under Accounting Standard – 15 (revised) on
 Employee Benefits is provided in Annexure – I to this schedule.
 
 15.  In compliance with Accounting Standard – 18 on Related Party
 Disclosures the required information is given in Annexure – II to this
 schedule.
 
 16.  Disclosure as required under Accounting Standard – 19 on Leases
 is as under:
 
 Operating Leases:
 
 The company has taken on operating lease, Product Tankages from IOC on
 a renewal basis. The lease rentals incurred for the current year
 amounting to Rs. 569.46 Lakhs are included in Rent (2010: Rs.766.85
 Lakhs).
 
 The lease rent payable for the next financial year is estimated to be
 Rs. 800.42 Lakhs (2010: Rs.850.11 Lakhs) and lease rent for the five-year
 period after the next year is estimated to be Rs. 4002.10 Lakhs. (2010:
 Rs.4250.54 Lakhs)
 
 17. In compliance with Accounting Standard – 22 on Accounting for
 Taxes on Income Deferred Tax Asset (-)/Liability ( ) for the financial
 period ended 31st March 2011 amounting to Rs. 2851.77 Lakhs (2010: Rs.
 16195.25 Lakhs) has been made/provided.
 
 18. Disclosure as required under Accounting Standard – 27 on Financial
 Reporting of Interests in Joint Ventures is as under:
 
 a) Name of the Joint Venture Indian Additives Ltd.
 
 Proportion of ownership interest 50%
 
 Country of Incorporation India
 
 b) Name of the Joint Venture National Aromatics and Petrochemicals
 
 Corporation Ltd.
 
 Proportion of ownership interest 50%
 
 Country of Incorporation India
 
 Aggregate amount of interests in Joint Venture is not given since the
 joint venture is not operational.
 
 19.  During the year, the company has undertaken a review of all fixed
 assets in line with the requirements of AS - 28 on Impairment of
 Assets. Based on such review, no provision for impairment is required
 to be recognised for the year.
 
 20.  Disclosure required under the provisions of Section 22 of Micro,
 Small and Medium Enterprises Development Act, 2006.
 
 The company sought written confirmation from its suppliers to identify
 micro, small and medium enterprises.
 
 No principal amount or interest amount remains unpaid to such Micro and
 Small enterprises as on 31.03.2011 and no payments were made to such
 enterprises beyond the appointed day during the year. Also, the
 company has not paid any interest in terms of section 16 of the
 above-mentioned act or otherwise.
 
 This information has been determined to the extent, such parties could
 be identified on the basis of information made available to the
 company.
 
 21.  The Profit and Loss Account includes:
 
 a) Expenditure on Public Relations and Publicity amounting to Rs. 260.08
 Lakhs (2010: Rs. 135.16 Lakhs).  The ratio of annual expenditure on
 Public Relations and Publicity to the annual turnover is 0.00006808: 1
 (2010: 0.00004616:1).
 
 b) Research and Development expenses Rs. 385.99 Lakhs (2010: Rs. 388.12
 Lakhs).
 
 c) Entertainment Expenses Rs. 25.47 Lakhs (2010: Rs. 22.40 Lakhs).
 
 22.  Previous year''s comparative figures have been regrouped and
 recast, wherever necessary, to the extent practicable, for uniformity
 in presentation.
 
 Key Management Personnel Whole-time Directors
 
 1) Shri K. Balachandran
 
 2) Shri N.C.Sridharan
 
 3) Shri S.Chandrasekaran
 
 4) Shri S. Venkataramana (from 3rd October 2010)
 
 Joint Venture Companies
 
 1) Indian Additives Limited
 
 2) National Aromatics and Petrochemicals Corporation Limited.