1.  Contingent Liabilities:
 
 a) Liability on account of Sales Bills discounted with Bank Rs. Nil
 (Previous Year Rs. 385.096 million).
 
 b) Disputed demands in appeal towards excise Rs. 107.100 million
 (Previous year Rs. 73.623 million), customs Rs. 13.427 million
 (Previous year 13.427 million) and sales tax Rs. 471.343 million
 (Previous year Rs. 453.491 million)
 
 c) i) Disputed Income Tax demands and matters in appellate proceedings
 Rs. 439.420 million (Excluding consequential interest or penalty),
 (Previous year Rs. 440.390 million).
 
 ii) Appeals preferred by Income Tax Department against Appellate
 decisions in favour of the Company, wherein, should the ultimate
 decision be unfavourable to the Company, the liability is estimated to
 be Rs. 570.130 million (Previous year Rs. 538.290 million).
 
 d) Guarantees given by Companys Bankers on behalf of the Company,
 towards performance and other matters, amounting to Rs. 485.445 million
 (Previous year Rs. 523.237 million), are secured by hypothecation of
 Stock in trade, Book Debts, Stores and Spares etc.
 
 e) The Company has imported capital goods under the Export Promotion
 Capital Goods (EPGG) scheme, of the Government of India, at
 concessional rates of duty on an understanding to fulfil quantified
 exports against which future obligation aggregates to Rs. 791.948
 million (Previous year Rs. 1,017.000 million) over a period of six /
 eight years from the date of license.
 
 f) Amounts claimed by Banks in respect of derivative transactions which
 are under dispute not acknowledged as debt Rs.138.690 million (Previous
 year Rs. Nil).
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account (net of advances paid), not provided for Rs. 307.876 million
 (Previous year. Rs. 187.750 million).
 
 3.  Pursuant to notification of 31st March 2009 issued by Ministry of
 Corporate Affairs, Government of India, in respect of changes to
 Accounting Standard 11 the Company had opted for capitalisation of
 exchange difference in respect of long term foreign currency loans
 taken for acquisition of assets . Accordingly, the exchange difference
 has been recalculated based on the exchange rate prevalent on
 31.03.2011 and an amount of Rs. 40.150 million has been decapitalised
 during the year 2010-11.
 
 Current Tax:
 
 Provided in accordance with the provisions of the Income Tax Act 1961.
 
 4.  Sundry Creditors
 
 A) Outstanding to creditors other than Micro, Small & Medium Enterprise
 Rs.  516.285 million (Previous year: Rs. 530.547 million) (Interest
 Paid/Payable is Rs. Nil, Previous-year: Rs. Nil)
 
 B) Outstanding to Micro, Small & Medium Enterprise: Rs. 0.702 million
 (Previous year: Rs.2.249 million)
 
 5.  Based on the periodic review, it is the Companys view that the
 Preform Manufacturing Facility which was impaired in 2004-05 continues
 to remain impaired. Consequently, the impairment loss of Rs 288.510
 million (Gross) is being carried forward. No further addition have been
 made to the impairment provisions, since there is no significant change
 in status.
 
 6.  Investment in Joint Venture
 
 1.  The name of the joint venture company Finolex J-Power Systems
 Private Limited
 
 2.  Ownership interest : 49%
 
 3.  Country of Incorporation India
 
 On 13th December, 2007, the Company entered into a joint venture
 agreement with J- Power Systems Corporation of Japan, to offer complete
 turnkey solutions in extra high voltage (EHV) cable systems in India
 and abroad.
 
 As on 31sl March 2011, the Company has invested Rs. 382.200 million in
 the shares of the joint venture.
 
 7.  Related Party Transactions: Disclosures as required by Accounting
 Standard 18 Related Party Disclosures are given below:
 
 a) List of Related Parties:
 
 Associate Companies 
 
 Finolex Industries Limited
 
 Finprop Advisory Services Limited 
 
 Corrugated Box Industries (India) Private Limited 
 
 Finolex Plasson Industries Limited 
 
 Finolex Infrastructure Limited
 
 Joint Venture     
 
 Finolex J-Power Systems Private Limited
 
 b) Key management Personnel and Relatives
 
 Key Management Personnel
 
 1.  Mr. P. P. Chhabria - Chairman
 
 2.  Mr. D. K. Chhabria - Managing Director
 
 3.  Mr. M. L. Jain - Asst. Managing Director and Chief Operating
 Officer
 
 (Upto 31st October, 2010)
 
 4.  Mr. M. Viswanathan - Director - Finance & Chief Financial Officer
 
 Relatives
 
 Mr. K. P. Chhabria - Brother of Mr. P.P. Chhabria, and Father of Mr. D.
 K. Chhabria
 
 8.  A.  Quantitative information of derivative instruments outstanding
 as at the balance sheet date:
 
 B.  The Company has entered into derivative transactions with an
 objective to hedge the financial risks associated with its business
 viz. foreign exchange and interest rate.
 
 C.  The Company has not hedged the following foreign currency
 exposures:
 
 (i) Borrowings grouped under secured loans equivalent to Rs. 1,493.933
 million (Previous year Rs. 1,347.000 million).
 
 (ii) Creditors for imports equivalent to Rs. 65.588 million (Previous
 year Rs. 97.435 million)
 
 (iii) Receivables equivalent to Rs. 25.287 million. (Previous year Rs.
 23.194 million)
 
 9.  Segment Reporting:
 
 The Business segment has been considered as a primary segment for
 disclosure. The categories included in each of the reported business
 segment are as follows:
 
 i) Electrical Cables
 
 ii) Communication Cables
 
 iii) Copper Rods
 
 iv) Others
 
 The above business segments have been identified considering
 
 i) The nature of the product/services 
 
 ii) The related risks and returns
 
 iii) The internal financial reporting systems
 
 Revenue and expenses have been accounted for based on their
 relationship to the operating activities of the segment.  Revenues and
 expenses which relate to the enterprise as a whole and are not
 allocable to segments on a reasonable basis have Been included under
 Unallocable Expenses. Assets and Liabilities which relate to the
 enterprise as a whole and are not allocable to segments on a reasonable
 basis have been included under Unallocable Assets/Liabilities.