Hindustan Zinc

1.  Contingent Liability:
 
                                                       (Rs in crore)
 
                                      As at 31 March   As at 31 March
                                              2009          2008
 
 Claims against the company not 
 acknowledged as debts
 (Matters pending in court/arbitration. 
 No cash out flow is expected in future)
 - Suppliers and contractors                 40.11         46.19
 
 - Employees, ex-employees and others        16.37         11.28
 
 - Land Tax                                   0.27          0.27
 
 Guarantees issued by the banks
 
 (Bank guarantees are provided under legal/contractual obligation. No
 cash out flow is expected in future)        25.91         23.55
 
 Sales tax demands (This pertain to disputes in respect of tax rate
 difference/classifi cation, stock transfer matters.  No cash out flow
 is expected in future)                      26.45         31.83
 
 Income tax (This pertains to demand raised by Department on various
 additions to return income.  No cash out flow is expected in future))
 106.76
 
 Excise Duty demands (This pertain to Modvat/Cenvat credit availed on
 inputs, capital goods, alleged duty demand on captive use of the goods.
 No cash out flow is expected in future) 46.52 47.39
 
 Bills Discounted (No cash out flow is expected in future) 207.90 327.14
 
 Claim for compensation (CLZS land) Not ascertainable Not ascertainable
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account not provided for Rs 1492.31 crore (2008: Rs 985.39 crore).
 
 3.  The title deeds are still to be executed in respect of 10.63 acres
 of freehold land at Vishakapatnam.
 
 4.  Additions to fixed assets and year end capital work in progress
 include Foreign Exchange loss Rs 2.83 crore (2008 : Rs 5.76 crore)
 
 6.  The fund based and non fund based facility of Rs 400 crore (2008:
 Rs 200 crore) from bank is secured by pledge of specific investments
 and a subservient charge on the entire current assets, present and
 future.
 
 7.  M atured fixed deposits of Rs 0.08 crore (2008: Rs 0.08 crore) due
 for transfer to Investor Education and Protection Fund have not been
 transferred in view of pending legal litigation between the
 beneficiaries.
 
 (iii) Note :
 
 a) Business Segment :
 
 The Company is engaged in the business of mining and smelting of zinc
 and lead operations. The Company has also entered into wind energy
 business; however, its operations for the year are within the threshold
 limits stipulated under AS-17 ‘Segment Reporting’ and hence it does not
 require disclosure as a separate reportable segment. In the previous
 year, the company operated in a single segment of mining and smelting
 of zinc and lead operations.
 
 b) Geographical Segment The Geographical segments considered for
 disclosure are as follows: – Revenue within India includes sales to
 customers located within India and earnings in India.  – Revenue
 outside India includes sales to customers located outside India and
 earnings outside India.
 
 8. Intangible assets represents Rs 98.41 crore (2008: Rs 98.41 crore)
 being long term investment in equity shares of Andhra Pradesh Gas Power
 Corporation Limited, Hyderabad, which entitles the company to draw
 power in Andhra Pradesh for its Vishakapatnam unit. This has been
 amortised as a fixed asset. Amortisation for the year is Rs 4.67 crore
 (2008: Rs 4.67 crore.), cumulative Rs 37.71 crore (2008: Rs 33.04
 crore).
 
 9. Arising from the Announcement of the Institute of Chartered
 Accountants of India (ICAI) on 29 March 2008, the Company has chosen to
 early adopt Accounting Standard 30, Financial Instruments: Recognition
 and Measurement. Coterminous with this, in the spirit of complete
 adoption, the Company has also implemented the consequential limited
 revisions in view of AS-30 to certain Accounting Standards as have been
 announced by the ICAI. Consequent to this adoption, current investments
 which under AS-13 Accounting for Investments are carried at the lower
 of cost and fair value, have been accounted for at fair value resulting
 in investment being valued at Rs 104.41 crore (2008 Rs: 351.84 crore)
 above their cost and the profit before tax being lower by Rs 247.43
 crore (2008 higher by Rs 220.74 crore).
 
 10. Sundry Creditors includes due to Micro, Small and Medium
 Enterprises Rs 0.32 Crore (2008: Rs 0.60 Crore). The aforesaid
 information is on the basis of information available with the Company
 from parties. There is no interest paid/payable as at 31 March 2009
 
 11. Previous year’s figures have been regrouped and rearranged,
 wherever necessary.