Eveready Industries India

1.  Trial proceedings before the Chief Judicial Magistrate, Bhopal, on
 the modified charges framed under the directions of the Honble Supreme
 Court that commenced in September 1997 are yet to be concluded. As per
 the advice of legal counsel, allegations against the Company are
 without any firm basis and the possibility of proceeding against the
 Company succeeding is extremely remote. Since the charges are very
 likely to fail, no provision is necessary at this stage.
 
 2.  Based on valuation made by professional valuers, Brand Eveready
 was valued at Rs. 66,000 Lakhs and was taken into the books in 2004-05.
 
 3.  Expert opinion was received whereby the working life of brand
 Eveready was estimated at more than 100 years. However, as a measure
 of prudence, the amortisation period of the brand has been kept at 40
 years only.
 
 4.  Brand included as Intangibles in Fixed Assets (Schedule 5) includes
 purchased brand [Gross block : Rs. 1,600 Lakhs (31.3.2008: Rs. 1,600
 Lakhs) and Net Block: Rs. 800 Lakhs (31.3.2008: Rs. 960 Lakhs)].
 
 5.  Contingent Liabilities
 
 5.1.  Claims against the Company not acknowledged as debts:
 
 Excise & Customs : Rs. 1,318.52 Lakhs (31.3.2008: Rs. 1,200.34 Lakhs)
 
 Sales tax: Rs. 93.41 Lakhs (31.3.2008: Rs. 80.02 Lakhs)
 
 Income tax:
 
 The Department is in appeal in regard to matters decided in favour of
 the Company, the tax effect whereof is Rs. 71.59 Lakhs (31.3.2008: Rs.
 72.05 Lakhs)
 
 The Company is in appeal in regard to assessments made, the tax effect
 whereof is Rs. 599.70 Lakhs (31.3.2008: Rs. 599.70 Lakhs)
 In respect of matters relating to erstwhile The Bishnauth Tea Company
 Limited (BTCL) [amalgamated with the Company effective 1 April, 2000
 : Rs. 125.48 Lakhs (31.3.2008: Rs. 125.48 Lakhs)].
 
 5.2.  Others : Rs. 193.39 Lakhs (31.3.2008: Rs. 191.27 Lakhs).
 
 5.3 Bank Guarantees: Rs.193.61 Lakhs (31.3.2008: Rs. 198.91 Lakhs)
 includes Rs.33.84 Lakhs for Sales Tax Claim appearing under 6.1.
 
 6.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for: Rs. 1325.32 Lakhs (31.3.2008: Rs. 508.01
 Lakhs).
 
 7.  Taxation
 
 Provision for taxation includes provision for wealth tax Rs. 11 Lakhs
 (2007-08: Rs. 11 Lakhs).
 
 8.  The Profit and Loss Account includes net exchange Loss of Rs.
 13.56 Lakhs (2007-08 : Gain of Rs. 16.19 Lakhs)
 
 9.  Loans and Advances (Schedule 10) include due from directors of the
 Company Rs. 24.21 Lakhs (31.3.2008: Rs. 26.29 Lakhs). The maximum
 amount due from directors during the year was Rs. 26.29 Lakhs (2007-08:
 Rs. 54.60 Lakhs)
 
 10.  Revenue Expenditure on Research & Development Rs. 122.31 Lakhs
 (2007-08: Rs. 108.56 Lakhs) is included in Operating Expenses (Schedule
 3).
 
 11.  Capital Work-in-Progress is inclusive of Capital Advances Rs.
 627.46 Lakhs (31.3.2008: Rs. 336.91 Lakhs).
 
 12. Purchase of finished goods for resale include Rs. 1,350.98 Lakhs
 (2007-08: Rs. 1,522.29 Lakhs) towards purchase of 16.97 million pieces
 of Batteries (2007-08 : 31.09 million pieces), Rs. 6,845.79 Lakhs
 (2007-08: Rs. 2,788.11 Lakhs) towards purchase of 15.96 million pieces
 of Flashlights (2007-08: 5.04 million pieces) and Rs. 3.159.08 Lakhs
 (2007-08 : Rs. 6,203.65 Lakhs) towards purchases of 6.29 million pieces
 of General Lights (2007-08 : 7.45 million pieces).
 
 13.  Earnings in Foreign Currency
 
 Export of goods calculated on FOB basis: Rs. 1,766.07 Lakhs (2007-08:
 Rs. 1,602.85 Lakhs).
 
 14.  Unpaid dividend represents dividend of earlier years on shares
 allotted to certain non-resident shareholders of the erstwhile The
 Bishnauth Tea Company Limited (BTCL) pursuant to the Scheme of
 Amalgamation of BTCL with the Company and whose present whereabouts are
 not known. The number of shares attributable to such dividend is 63,037
 (2007-08: 63,037) equity shares.
 
 15.  Related Party Disclosures List of Related Parties :
 
 a) Key Management Personnel
 
 Executive Vice-Chairman & Managing Director - Mr. D. Khaitan
 
 Wholetime Director - Mr. S. Saha
 
 b) Relatives of Key Management Personnel with whom the Company had
 transactions during the year -
 
 Mrs. Neena Saha - Wife of Mr S. Saha
 
 Mr. A. Khaitan - Son of Mr. D. Khaitan
 
 c) Entity having significant influence - Williamson Magor & Company
 Limited