1.  contingent liabilities
 
                                                        rs. Lakhs
 
                                                     2010        2009
 
 Sales tax related matters                              -       18.48
 
 excise duty related matters                        19.88       67.15
 
 Counter guarantees to bank in
 respect of guarantees to:
 
 Sales tax / Central excise authorities              0.48        0.48
 
 others                                             52.12       68.13
 
 income tax demands against which the Company
 has preferred appeal before appropriate 
 authorities                                        32.82       32.82
 
 Claims filed by an ex-employee of the Company 
 pending in a court of law                           1.49        1.49
 
 Letter of credit outstanding                       23.28       20.18
 
 2.  the Company had received show cause notices from the Commissioner
 of Central excise, Kolkata and Chennai seeking to know why demands for
 rs.240.29 lakhs and rs.386.60 lakhs respectively could not be raised on
 the Company on account of differential central excise duty alleged to
 have been short paid / not paid during the period 1st June 1991 to 31st
 mar 1995 for Kolkata factory and 1st June 1991 to 30th april 1998 for
 Chennai factory.  the replies to all the above show cause notices were
 filed by the Company and personal hearing have also been completed both
 at Kolkata and Chennai. in the mean time, the Central excise
 authorities had confirmed the demand of rs.402.6 lakhs (including
 penalty rs.16 lakhs) for the period up to 30th april 1998 for Chennai
 factory and rs.260.29 (including penalty rs.20 lakhs) for the period up
 to 31st march 1995 for Kolkata factory.  the Company had preferred
 appeals to the appropriate authorities against the above demands and in
 both the cases the appellant authority has set aside the demands for a
 de-novo consideration of the issue. in view of the above the company
 contends that the above demands are not sustainable and accordingly no
 provision thereof has been considered in these accounts
 
 3.  Micro, small and Medium enterprises
 
 The management has identified the enterprises which have provided goods
 and services to the Company and which qualify under the definition of
 micro and small enterprises, as defined under micro, Small and medium
 enterprises Development act, 2006. accordingly, there are no dues
 payable to such enterprises as at the year end.
 
 4.  in view of accumulated carry forward loss, the net-worth of henkel
 marketing india Limited, the subsidiary company has been eroded and
 necessary provision has been made in the accounts in the earlier years''
 impacting the investments made in henkel marketing india Limited.
 
 5.  as a matter of prudence, the company has recognised deferred tax
 asset amounting to rs.1,321.44 to the extent of the deferred tax
 liability, resulting in nil net deferred taxes for the current year.
 
 6.  related party disclosures :
 
 a) names of the related parties
 
 Subsidiary company 
 
 henkel marketing india Limited, india
 
 henkel ag&co Kgaa, Germany
 
 Promoters 
 
 Tamilnadu Petroproducts Limited, India
 
 Key management Personnel mr Jayant K Singh, managing Director
 
 7.  earnings in foreign exchange
 
 export of goods on FoB basis rs.436 lakhs (rs.861.61 Lakhs)
 
 8.  the basis and method of valuation of inventories, is as certified
 by the management.
 
 9.  in view of carry forward income tax Loss no provision for income
 tax is required. Provision for tax represents minimum alternative tax
 (mat).
 
 10 .  Previous year''s figures have been regrouped/restated wherever
 necessary to conform to this year''s classification.