1.  In the opinion of the Board of Directors, the current assets, loans
 and advances are approximately of the values stated if realised in the
 ordinary course of business and the provisions for depreciation and all
 known liabilities are adequate and not in excess of the amounts
 reasonably necessary.
 
 2.  In respect of unclaimed dividends, the actual amount to be
 transferred to the Investor Education and Protection Fund shall be
 determined on the due date.
 
 Above information is furnished in respect of the products of the
 Company which are primarily mea t for sale.
 
 i. Vide notification No SO 477(E) dated 25th July, 1991, issued by the
 Ministery of Industry, the Company''products are exempted from licensing
 provisions under the Industries (Development an Regulati n) Act, 1951.
 
 ii. Installed capacities are as certified by the management on which
 the Auditor’s ha e relied, being a technical matter.
 
 v.  Production is net of filling and other losses.
 
 v. In terms of Notification no. S.O.301 (E) dated 8th February, 2011 by
 Minister of Corpo ate Affairs, Government of India, exempting certain
 classes of companies from certain disclosure requirement under Part-II
 of Schedule VI of the Companies Act, 1956 , the Company being export
 oriented company (ex ort is more than 20% of he turnover) is exempted
 from the disclosure requirements under paragraph 3(i)(a), 3(ii)( ),
 3(ii)(b), (ii)(d) of Part- I of Schedule VI of the Companies Act, 1956
 and hence, disclosure relating to turnover, consumption, opening stock
 closing stock and purchases in respect of goods manufactured/traded are
 not made by he Company.
 
 3.  Contingent liabilities not provided for in respect of :- 
 
                                              Amount (Rs. in Lacs)
 
 Particulars                              2010-2011         2009-2010
 
 Sales Tax                                    7.12             7.12
 
 Income Tax                                3191.25           107.27
 
 Service Tax                                268.93            48.55
 
 Bills discounted                             0.00            68.08
 
 Bank Guarantees                           1478.18           872.03
 
 Electricity Duty                          1317.30             0.00
 
 Claims in respect of labour matters Amount is not ascertainable
 
 Note:
 
 Amount of Rs. 149.38 Lacs (previous year Rs. 36.94 Lacs) has been paid
 in respect of above Sales Tax, Income Tax, Service Tax and Electricity
 duty demands and not charged to the Profit and Loss Account.
 
 4.  Power and Fuel expenses of previous year include Rs. 2886 Lacs on
 account of price difference paid pursuant to out of court settlement
 with Gujarat Gas Company Limited, for gas supplied, from April, 2008
 till December, 2008.
 
 5.  Estimated amount of contract remaining to be executed on capital
 account and not provided for, net of advances – Rs.  3146.76 Lacs
 (previous year Rs. 10067.58 Lacs)
 
 [C] Notes:
 
 1) The Company operates in following business segments:
 
 a.  Chemicals - Comprising of Refrigerant gases, Anhydrous Hydrochloric
 acid, Caustic-Chlorine, Chloromethane, PTFE, PT-PTFE and revenue from
 Carbon Credits.
 
 b.  Power - Comprising of Power Generation.
 
 2) Inter-segment revenue comprise of power generated by Captive Power
 Generation Units and consumed in Chemical Business and is priced at
 estimated market value.
 
 3) Chemicals business is operated in two geographical markets, in
 domestic and overseas market. In respect of power segment, the entire
 production is indigenously sold/consumed. The disclosures regarding
 geographical segments are made accordingly.
 
 4) The above segment information includes the respective amounts
 identifiable to each of the segments and amounts allocated on a
 reasonable basis.
 
 6.  Joint Venture:
 
 The Company has a Joint Venture interest of 33.77% in Xuancheng
 HengYuan Chemical Technology Company Ltd., a company incorporated in
 the People’s Republic of China. As on 31.3.2011 the company has
 invested a sum of Rs.1263.89 Lacs in the share capital of this Joint
 Venture.
 
 The JVC is engaged in the business of manufacture of anhydrous hydrogen
 fluoride and allied activities.
 
 a) The financial year of the JVC is January to December. The Company’s
 share of each of the assets, liabilities, income and expenses etc.
 (each, without elimination of the effect of the transactions between
 the Company and the JVC) related to its interest in this JVC, based on
 the audited accounts for the year ended 31st December, 2010 are as
 under:
 
 b) The Company’s share of capital commitments in the JVC as at 31st
 December, 2010 is Rs. Nil (previous year Nil).
 
 c) The Company’s share of contingent liability of the JVC as at 31st
 December, 2010 is Rs. Nil (previous year Nil).
 
 d) The Company’s transactions with JVC, being a related party, are
 disclosed in note no.25.
 
 7.  Related Party Disclosures : 
 
 (i) Names of Related Parties
 
 (A) Where control exists: 
 
 Holding Company:
 
 Inox Leasing & Finance Limited 
 
 Subsidiary Companies: 
 
 Inox Leisure Limited 
 
 Inox Infrastructure Private Limited 
 
 Inox Motion Pictures Limited
 
 Inox Wind Limited (Incorporated on 09th April 2009)
 
 Gujarat Fluorochemicals Americas LLC, U.S.A. (GFL Americas LLC)
 (Incorporated on 08th September 2009) 
 
 Inox Renewables Limited (Incorporated on 11th November 2010) 
 
 Fame India Limited (Subsidiary of Inox Leisure Limited w.e.f. 06th 
 January 2011) 
 
 Fame Motion Pictures Limited (formerly Shringar Films Limited) 
 (Subsidiary of Fame India Limited) 
 
 Big Pictures Hospitality Services Private Limited (Subsidiary
 of Fame India Limited)
 
 (B) Other related parties with whom there are transactions during the
 year: 
 
 Joint Venture
 
 Xuancheng HengYuan Chemical Technology Co. Ltd 
 
 (XHCT Co. Ltd) 
 
 Key Management Personnel
 
 Shri V K Jain (Managing Director)
 
 Shri D K Sachdeva (Whole Time Director)
 
 Shri J S Bedi (Whole Time Director)
 
 Relatives of Key Management Personnel
 
 Shri D K Jain (Father of Shri V K Jain)
 
 Shri P K Jain (Brother of Shri V K Jain)
 
 Shri Devansh Jain (Son of Shri V.K. Jain)
 
 Enterprises over which Key Management Personnel, or his relative, has
 significant influence
 
 Devansh Gases Private Limited
 
 Devansh Trading and Finance Private Limited
 
 Inox India Limited
 
 Inox Air Products Limited
 
 Inox Chemicals Private Limited
 
 Refron Valves Limited
 
 Rajni Farms Private Limited
 
 Sidhapavan Trading and Finance Private Limited
 
 Siddho Mal Investments Private Limited
 
 The above defined benefit plans are unfunded. The estimate of future
 salary increase, considered in actuarial valuation, take account of
 inflation, seniority, promotion and other relevant factors such as
 supply and demand in the employment market.
 
 (v) General description of significant Leasing arrangements –
 
 Assets given on operating lease are Office Premises. The
 non-cancellable initial lease tenure is for five to nine years, which
 can be further extended at the mutual option of both the parties.
 
 c) The Company’s other significant leasing arrangements are in respect
 of operating leases for premises (offices and residential
 accommodations) taken on lease. Generally, these lease arrangements are
 non-cancellable, range between 11 months to 5 years and are usually
 renewable by mutual consent on mutually agreeable terms. The aggregate
 lease rentals are charged as Rent in Schedule 12 to the Profit and
 Loss Account.
 
 8.  Statement Pursuant to Part IV of Schedule VI to the Companies Act,
 1956, is enclosed vide Annexure.