1.  CONTINGENT LIABILITIES NOT PROVIDED FOR 
 
                                              As at         As at
 
                                          31.3.2011     31.3.2010
 
 a) Demands from excise, income tax, 
 sales tax and other authorities
 disputed by the Company @                  2524.93*       448.85*
 
 b) Uncalled liability on shares 
 partly paid                                 148.99        148.99
 
 c) Surety given to U.P. Trade Tax 
 Authority on behalf of subsidiary
 company-International Tobacco 
 Company Limited                              15.66         15.66
 
 d) Guarantee given to a bank on behalf 
 of subsidiary company – International 
 Tobacco Company Limited                      46.79         26.83
 
 * includes Rs.1702.65 lacs (previous year Rs.166.00 lacs) relating to
 demands received by the subsidiary company – International Tobacco
 Company Limited.
 
 @ all these matters are subject to legal proceedings in the ordinary
 course of business and in the opinion of the Company, these are not
 expected to have material effect on the financial results of the
 Company when ultimately concluded.
 
 2  The Company and its contract manufacturer have received various
 show cause notices from Excise Authorities asking them to explain why
 certain amounts mentioned in these notices should not be paid.  As
 these notices are in the nature of explanations required, the Company
 does not consider these to constitute a liability of any kind.
 
 3.  Sundry creditors include Rs.240.86 lacs (previous year Rs.117.80
 lacs) due to micro and small enterprises covered under The Micro,
 Small and Medium Enterprises Act, 2006 to the extent such parties have
 been identified from the available information. The Company has not
 received any claim for interest from any party covered under the said
 Act.
 
 4.  The Company has entered into various operating lease agreements for
 premises (residential, offices, godowns, etc.). These lease
 arrangements are mostly cancellable in nature and range between two to
 three years generally, or longer, and are usually renewable by mutual
 consent on mutually agreeable terms. The aggregate rentals paid under
 such agreements have been charged as rent in Schedule 15.
 
 The future minimum lease payments in respect of non-cancellable periods
 of certain operating leases are as under:
 
 (i) for periods not later than one year – Rs.118.22 lacs (previous year
 – Rs.122.86 lacs)
 
 (ii) for periods between later than one year and less than five years –
 Rs. 216.65 lacs (previous year – Rs.281.26 lacs)
 
 The Company has let out and sub-let part of its owned and rented office
 premises under lease arrangements which are cancellable in nature but
 renewable on mutually agreeable terms. The rent and hire charges
 receivable in respect thereof have been accrued as income in Schedule
 13.
 
 5.Related party disclosures under Accounting Standard 18
 
 (A) Names of related parties and nature of related party relationships:
 
 (a) Subsidiary companies:
 
 International Tobacco Company Limited Chase Investments Limited City
 Leasing and Finance Company Limited Manhattan Credits and Finance
 Limited Kashyap Metal and Allied Industries Limited Unique Space
 Developers Limited
 
 (b) Subsidiaries of the subsidiary companies:
 
 Rajputana Infrastructure Corporate Limited Gopal Krishna infrastructure
 & Real Estate Limited
 
 (c) Associates:
 
 Philip Morris International Finance Corporation, of which the Company
 is an associate.
 
 Success Principles India Limited, an associate of the Company.
 
 IPM India Wholesale Trading Private Limited, an associate of the
 Company.
 
 KKM Management Centre Private Limited, an associate of the Company
 
 (from March 14,2011).
 
 (d) Key management personnel:
 
 Mr. K.K.Modi President and Managing Director
 
 Mr. Lalit Kumar Modi Executive Director (upto July 31, 2010) and
 
 Ordinary Director thereafter Mr. Samir Kumar Modi Executive Director
 
 Mr. R.Ramamurthy Whole-time Director
 
 (e) Enterprises over which key management personnel and their relatives
 are able to exercise significant influence:
 
 Modicare Limited
 
 Modern Homecare Products Limited
 
 K.K. Modi Investment & Financial Services Private Limited
 
 Beacon Travels Private Limited
 
 Indofil Industries Limited (Formerly Indofil Organic Industries
 Limited)
 
 Assam Cigarette Company Private Limited
 
 R C Tobacco Private Limited
 
 HMA Udyog Private Limited
 
 Bina Fashion N Food Private Limited
 
 Modicare Foundation
 
 Priyal Hitay Nidhi
 
 Colorbar Cosmetics Private Limited
 
 Gujarmal Modi Science Foundation
 
 Modi Healthcare Placement India Private Limited
 
 Fashion Television India Private Limited
 
 6.Segment reporting disclosures under Accounting Standard 17
 
 (A) Business segments:
 
 Based on the guiding principles given in Accounting Standard-17
 Segment Reporting, the Company''s primary business segments are (a)
 Cigarette and tobacco products; and (b) Tea and other retail products.
 
 (B) Geographical segments:
 
 Since the Company''s activities/operations are primarily within the
 country and considering the nature of products it deals in, the risks
 and returns are same and as such there is only one geographical
 segment.
 
 Segment accounting policies:
 
 In addition to the significant accounting policies applicable to the
 business segments as set out in Note 1 in Schedule 16, the accounting
 policies in relation to segment accounting are as under:
 
 a) Segment revenue and expenses:
 
 Segment revenue and expenses only include items directly attributable
 to the segment. They do not include investment income, interest income
 from inter-corporate deposits and loans given, dividend income, profit
 or loss on sale of investments, provision for diminution in value of
 investments, interest expense (excluding those relatable to segments),
 donations and provision for taxation (current and deferred tax).  Since
 the corporate office of the Company primarily caters to the cigarette
 and tobacco products segment, its expenses have been considered to be
 attributable to the same.
 
 b) Segment assets and liabilities:
 
 All segment assets and liabilities are directly attributable to the
 segment.
 
 Segment assets include all operating assets used by the segment and
 consist principally of net fixed assets, inventories, sundry debtors,
 loans and advances and operating cash and bank balances. Segment
 liabilities include all operating liabilities and consist principally
 of creditors and accrued liabilities.  Segment assets and liabilities
 do not include investments, inter-corporate deposits and loans given,
 bank balances for unclaimed dividend and fixed deposits'' unclaimed
 interest, real estate stock, share capital, reserves and surplus, loan
 funds, dividends payable and income-tax (current and deferred tax).
 
 II. Other long term employee benefits (based on actuarial valuation)
 
 - Compensated absences – amount recognized in profit and loss account –
 Rs. 737.23 lacs; previous year Rs. 488.30 lacs.
 
 7.  The figures for the previous year have been re-cast, wherever
 necessary to conform to the current year''s classification.