1.  Contingent Liabilities :-
 
 i) Capital commitments (net of advance) Rs. 94.32 lacs (Previous year
 Rs. 644.98 lacs).
 
 ii) Bank Guarantees Rs. 678.25 lacs (Previous year Rs.1,976.33 lacs).
 
 iii) Guarantees to Banks and others on behalf of Joint Venture Company
 Rs. 948.00 lacs (Previous year Rs. 874.02 lacs)
 
 iv) Bills Discounted with Banks outstanding as at 31st March, 2011 -Nil
 (Previous year Rs. 179.81 lacs).
 
 v) Income Tax demands against which the Company has preferred appeals -
 Nil (Previous year Rs. 335.75 lacs).
 
 vi) Sales Tax demands against which the company has preferred appeals -
 Nil (Previous year Rs. 3.10 lacs).
 
 vii) Excise duty demands against which the company has preferred
 appeals Rs 523.14. lacs (Previous year Rs.  124.94 lacs). The Company
 has already deposited a sum of Rs.30.15 lacs (Previous year Rs. 32.34
 lacs) against the aforesaid demands.
 
 viii) Central Excise Appeal filed by the Department Rs 17.04 lacs
 (Previous year Nil)
 
 2.  Provision for income tax has been made without considering some
 taxes and amounts which will be paid before filing of Income Tax Return
 as provided under Section 43-B of the Income Tax Act, 1961.
 
 3.  In the opinion of Board, the current assets, loans and advances are
 approximately of the value stated, if realized, in the ordinary course
 of business. The provision for depreciation and all known liabilities
 is adequate and not in excess of the amount reasonably necessary.
 
 4.  During the year, the Company has made provision for excise duty on
 stocks lying at the year end in various units amounting to Rs.525,1181-
 (Previous year Rs. 3,030,585/-) and has included the said amounts in
 the valuation of inventories. This has no effect on the profit for the
 year.
 
 5.  Lease Payments under an operating lease are recognised as an
 expense in the statement of Profit and Loss on a straight line basis
 over the lease term. Accordingly Rs.16,908,094/- has been charged to
 Profit and Loss Account during the year (Previous year Rs.
 18,808,046/-).
 
 6.  The Company has incurred Rs.2,223,933/- (Previous year Rs.
 4,621,272/-) on Research & Development during the year which has been
 debited to Establishment and Miscellaneous Expenses.
 
 7.  Export sales include Indirect Export amounting to Rs.5,363,225/-
 (Previous year Rs. 18,463,116/-).
 
 8.  The balances of Debtors, Advances and Creditors are subject to
 confirmation.
 
 9.  The company has paid annual listing fees to Bombay Stock Exchange
 Limited and National Stock Exchange of India Limited where its equity
 shares are listed.
 
 10.  Pursuant to the special resolution passed at the Extra Ordinary
 General Meeting of the members of the Company held on 6th May, 2010,
 the company has made preferential allotment of 890,000 Zero Coupon
 Warrants to the Promoters.each warrant convertible into one equity
 share of Rs.  10/- each at a price of Rs.70/- per equity share at any
 time within 18 months from the date of allotment of Warrants on
 preferential basis by private placement to the promoters of the Company
 as per Securities and Exchange Board of India (Issue of Capital and
 Disclosure Requirements) Regulations, 2009.
 
 11.  During the year ended 31st March, 2011, the Company has converted
 845,000 Zero Coupon Convertible Warrants issued by private placement on
 preferential basis to the promoters of the Company into 845,000 fully
 paid Equity Shares of Rs. 10/- each at a price of Rs.50/- per Warrant.
 The difference between the Conversion Price and the face value of the
 equity shares has been credited to Securities Premium Account.
 
 12.  Figures of the previous year have been regrouped/re-classified
 wherever necessary to make them comparable with the current years
 figures.
 
 13.  The Board of Directors had declared a special interim dividend of
 Rs. 10 per share (100%) amounting to Rs.169,516,280/- in its meeting
 held on 11th October, 2010 which has since been paid. The tax on
 special interim dividend amounting to Rs.28,154,535/- has also been
 paid.
 
 14.  During the year, the Company has paid arrears of Dividend on 10%
 Cumulative Redeemable Preference Shares upto 31* March, 2010 amounting
 to Rs.4,000,000/-. The tax on the above Preference Dividend amounting
 to Rs.664,350/- has also been paid.
 
 15.  During the year, the Company has redeemed 10% Cumulative
 Reedemable Preference Shares worth Rs. 10,000,000/- held by Heinrich
 Kopp GmbH, Germany at par alongwith Preference Dividend of Rs.
 1,000,000/- for year ended 31st March, 2011.  The tax on the above
 Preference Dividend amounting to Rs. 166,088/- has also been paid.
 
 16.  Related Party Disclosure
 
 i) Disclosures as required by Accounting Standard (AS-18) Related
 Party Disclosuresare given below:
 
 A.  Subsidiary Company
 
 IAFL Cables Ltd. (Formerly Indo Asian Cables Ltd.)
 
 B.  Investing Parties with whom the Company is a JV Partner
 
 1.  Indo Simon Electric Pvt. Ltd.(Formerly Indo Asian Simon Pvt. Ltd.)
 
 2.  Saudi National Lamps and Electricals Company Limited
 
 C.  Directors, Key Management Personnel
 
 1.  Mr. V.P.Mahendru- Chairman cum Managing Director
 
 2.  Mr.P.K.Ranade- Joint Managing Director
 
 3.  Mr. Vinay Mahendru- Executive Director
 
 D.  Relatives of Directors, Key Management Personnel
 
 1.  Mr. Vivek Mahendru -President (Operations)
 
 2.  Mr.Vimal Mahendru - President(Corporate Affairs)
 
 3.  Mr. Vikram Ranade -Vice President(Technologies)
 
 4.  Mr. Prashant Ranade -Vice-President(Procurement)
 
 5.  Mrs. Bela Mahendru*
 
 6.  Mrs. Ratna Mahendru*
 
 7.  Mrs. Richa Mahendru*
 
 8.  Mrs. Kaushalya Gujral*
 
 9.  Mr. O. P. Mahendru*
 
 10.  Mrs. Ameeta Ranade#
 
 11.  Mrs.AshaChaturvedi#
 
 12.  Mrs.Shama Guleri#
 
 13.  Mrs. Uma Sharmafl
 
 14.  RK.Ranade(H.U.F.)# Relatives of Mr. V.P.Mahendru #Relatives
 ofMr.RK.Ranade
 
 E.  Group Company
 
 IAFL Power Distribution & Infrastructure Pvt. Ltd.
 
 (Formerly Indo Asian Power Distribution & Infrastructure Pvt. Ltd.)
 
 F.  LLP firms in which relatives of Directors are partners
 
 1.  VPM Industrial Services Corporation LLP
 
 2.  PKR Hitech Industrial Corporation LLP
 
 17.  Slump Sale of Switchgear Business
 
 Pursuant to the decision in the meeting of the Board of Directors of
 the Company held on 22nd July, 2010 and the approval of the
 Shareholders of the Company through Postal Ballot, the Company has
 transferred the entire business of developing, manufacturing and
 selling Low Voltage Miniature Circuit Breakers, Residual Current
 Circuit Breakers, Air Circuit Breakers, Moulded Case Circuit Breakers,
 Distribution Boards, Fuses, Fuse Bases, Switches, Feeder Pillars,
 Contractors, Thermal Overload RelaysfSwitchgear Business), which is a
 separate segment as per AS 17, Segment Reporting, to a wholly owned
 subsidiary of Legrand France SA by way of Slump Sale as defined under
 Section 2(42C) of the Income Tax Act, 1961 on a going concern basis
 w.e.f. 9th September, 2010 for a total value of Rs.530.00 Crores on a
 Cash and Debt free basis
 
 18.  Segment Information for the year ended 31st March 2011 Information
 about Business segments - Primary Business Segments
 
 The company has considered business segment as the primary segment for
 disclosure. The products included in each of the reported business
 segments are as follows :-
 
 Switchgear includes MCBs, HRC Fuses, Feeder Pillars, RCCBs,
 Distribution Boards, Switches etc.
 
 Lighting includes Compact Fluorescent Lamps, Fluorescent Tube Lights
 and Luminaires etc.
 
 Cable and Wires includes Wires and Cables etc.
 
 Segment Revenue relating to each of the above business segments
 includes Other Income, where applicable.
 
 The above business segments have been identified considering:
 
 a) the nature of products and services
 
 b) the differing risks and returns
 
 c) the organization structure, and
 
 d) the internal financial reporting systems.
 
 19. The Company has given interest bearing inter corporate loan
 aggregating to Rs. 268.00 lacs (Previous Year Rs. Nil) to Indo Simon
 Electric Pvt. Ltd.(Formerly Indo Asian Simon Pvt. Ltd.), a Company with
 whom it is a Joint Venture Partner during the year. The maximum amount
 outstanding during the year was Rs. 278.87 lacs (Previous Year Rs.
 Nil). The Balance outstanding as on 31.03.11 is Rs. 278.87 lacs
 (Previous Year Nil). The above loan is re-payable on demand.