1) Contingent Liabilities:
 
 i) Guarantees given by the Company Rs. 1565.07 Lakhs (Rs. 1923.31
 Lakhs)
 
 ii) Claims against the Company not acknowledged as debt:
 
 a) Liabilities in respect of income tax matters for which the Company
 has succeeded in appeal but Income Tax Department has gone in further
 appeal and exclusive of the effect of similar matters in respect of
 pending assessments, Rs. 30.37 Lakhs (Rs.30.37 Lakhs).
 
 b) Liabilities in respect of income tax matters for which the Company
 has gone in further appeal and exclusive of the effect of similar
 matters in respect of pending assessments, Rs.  887.75 Lakhs (Rs.
 887.75 Lakhs).
 
 c) Excise/Customs/Service Tax in respect of which either show cause
 notice is received or the Company/Department is in appeal, Rs. 2435.29
 Lakhs (Rs. 2478.44 Lakhs).
 
 d) Amounts claimed by banks in respect of derivative transactions which
 are under dispute not acknowledged as debt Rs. 23977.54 Lakhs. (Rs.
 29474.16 Lakhs).
 
 2) Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advance payments), Rs. 1424.59
 Lakhs (Rs. 2714.73 Lakhs).
 
 3) A.  Quantitative information of derivative instruments outstanding
 as at the balance sheet date:
 
 B.  The Company has entered into forward contract / option transactions
 with an objective to hedge the financial risks associated with its
 business viz. foreign exchange, interest rate.
 
 C.  The Company has not hedged the following foreign currency
 exposures:
 
 i) Borrowings grouped under secured loans equivalent to Rs.  2301.70
 lakhs (Rs. 3452.48 Lakhs) and under unsecured loans equivalent to Rs.
 2268.55 Lakhs.  (Rs. 15892.52 Lakhs).
 
 ii) Creditors for imports equivalent to Rs. 8341.28 Lakhs (Rs. 12714.73
 Lakhs).
 
 4) Debentures: Terms of Redemption
 
 1000 Privately placed Secured Redeemable Non-Convertible Debentures of
 Rs. 10,00,000 (Rupees ten lakhs) each (1000 Debentures) will be
 redeemed in full at par at the expiry of five years from the date of
 allotment i.e. 17th November, 2008.
 
 500 Privately placed Secured Redeemable Non-Convertible Debentures of
 Rs.10,00,000 (Rupees ten lakhs) each (500 Debentures) will be
 redeemed in three equal instalments at par at the expiry of third,
 fourth and fifth year from the date of allotment i.e., 18th September,
 2009.
 
 5) Security for Secured Loans:
 
 (I) The outstanding amount payable on the above referred “1000
 Debentures with the interest accrued thereon but unpaid and all other
 costs, charges, expenses and fees payable to the Axis Trustee Services
 Limited (“ATSL or “Trustees) under the Debenture Trust deed dated 16th
 February, 2009 and for “500 Debentures under the Debenture Trust Deed
 dated 5th March, 2010 respectively have been secured by creation of
 english mortgage on pari passu basis in favour of Trustees on the
 Companys immovable properties situate at 1B, 1st Floor, Mahakant
 Building, Ellisbridge, Ahmedabad in the State of Gujarat.
 
 (II) The above referred Debentures and the borrowing from ICICI Bank
 Limited, Singapore Branch (“ICICI Bank) [Axis Bank Ltd.( Axis Bank)
 acting as Security Trustee of ICICI Bank] by way of foreign currency
 loan together with all interest, liquidated damages, commitment
 charges, premia on prepayment or on redemption, costs, expenses and
 other moneys and fees payable as applicable to the trustees under the
 Debentures Trust Deeds and Security Trustee Agreement have been secured
 by creating first equitable mortgage on pari passu basis in favour of
 the ATSL and the Axis Bank by depositing with Axis Bank, Axis Bank
 acting for itself as a Trustee of the above referred foreign currency
 loan of ICICI Bank and as an agent of ATSL, all the documents of title,
 evidences, title deeds and writings in respect of immovable properties
 falling within the battery limit of the site of the Companys plant for
 manufacture of PVC, situate at Village Golap, District Ratnagiri in the
 State of Maharashtra (“Title Deeds) together with all buildings and
 structures thereon and all plants and machinery attached to the earth
 or permanently fastened to anything attached to the earth.
 
 (III)The aggregate limits of working capital borrowing of Rs. 139575
 lakhs from the Bank of India Consortium together with all interest,
 liquidated damages, costs, charges, and other monies payable under
 working capital consortium agreement/sanction letters is secured by:
 
 (a) Hypothecation of inventories and book debts.
 
 (b) By extension of second equitable mortgage created in favour of Bank
 of India Consortium by deposit of Title Deeds with Axis Bank, Axis Bank
 acting as an agent for Bank of India Consortium, which ranks subsequent
 and subservient in rank of priority over the first equitable mortgages
 created / to be created by deposit of Title Deeds in respect of
 immoveable properties falling within the battery limit of the site of
 the Companys plant for manufacture of PVC Resin, situate at Village
 Golap, District Ratnagiri in the State of Maharashtra together with all
 buildings and structures thereon and all plant and machinery attached
 to the earth or permanently fastened to anything attached to the earth.
 
 8) Sundry Creditors
 
 A) Outstanding to creditors other than Micro, Small & Medium Enterprise
 Rs. 24017.23 lakhs (Rs. 18765.19 Lakhs) [Interest Paid/Payable is Nil (
 Rs. Nil)
 
 9) Donation includes political donation of Rs. Nil paid to political
 parties (Rs. 10 lakhs each paid to Nationalist Congress Party and Shiv
 Sena).
 
 (19) Segment Reporting :
 
 Primary Segment
 
 Based on the guiding principle given in the Accounting Standard - 17
 Segment Reporting issued by the Institute of Chartered Accountants of
 India,the Companys primary segments are PolyVinyl Chloride ( PVC ),
 Pipes & fittings and Power.
 
 The above business segments have been identified considering :
 
 i ) The nature of the products
 
 ii ) The related risks and returns
 
 iii ) The internal financial reporting systems
 
 Revenue and expenses have been accounted for based on the basis of
 their relationship to the operating activities of the segment . Revenue
 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.
 
 (20) Related Party Disclosures :
 
 Disclosures as required by the Accounting Standard 18  Related Party
 Disclosures  are given below : a) List of Related Parties
 
 1 Finolex Cables Limited
 
 2 Finolex Plasson Industries Limited
 
 3 Finprop Advisory Services Limited
 
 4 Pawas Port Limited
 
 5 Akash-Tatva Investments Pvt Ltd.
 
 6 Coated Fabrics Pvt Ltd.
 
 7 Corrugated Box Industries (I) Pvt.Ltd.
 
 8 Finolib Chemicals Pvt. Ltd.
 
 9 Orbit Electricals Pvt Ltd.
 
 10 Kaya Software Pvt. Ltd.
 
 11 Devita Investments Pvt Ltd.
 
 12 Mohini Investments Pvt Ltd.
 
 13 Fino Communication Equipments Pvt Ltd.
 
 14 K.P. Investments Pvt Ltd.
 
 15 Majesty Investments Pvt Ltd.
 
 16 Magnum Machines Pvt Ltd.
 
 17 V.K.C. Investments Pvt Ltd.
 
 18 Hi-Tech Poly Coatings Pvt Ltd.
 
 19 Pratibha Xero-Graphic Impression Pvt Ltd.
 
 Key management personnel
 
 1 Mr. P. P. Chhabria - Chairman
 
 2 Mr. K. P. Chhabria - Vice-Chairman
 
 3 Mr. Prakash P. Chhabria - Managing Director
 
 4 Mr. S. S. Dhanorkar -Wholetime Director
 
 5 Mr. P. Subramaniam -Wholetime Director