1.  Share Capital
 
 During the year the Company has issued 701,850 (previous year 891,599)
 fully paid equity shares of Rs. 10 each to its employees under IFB
 Industries Limited - Employees Stock Purchase Scheme 2008 of which
 701,850 (previous year 812,199) shares were issued at premium of Rs 5
 per share.
 
 2.  Impairment
 
 The Company has reviewed potential generation of economic benefits from
 its cash generating units and concluded that there is no further
 impairments during the year.
 
 3.  Dues to Micro, Small and Medium Enterprises
 
 There are no Micro, Small and Medium Enterprises, to whom the Companies
 owes dues, which are outstanding for more than 45 days as at March 31,
 2011 except for the details mentioned below. Information as required to
 be disclosed under the Micro, Small and Medium Enterprises Development
 Act, 2006 has been determined to the extent such parties have been
 identified on the basis of information available with the Company.
 
 4.  Employee Benefits
 
 (a) Gratuity and Leave Encashment
 
 The employee''s gratuity fund scheme, determined as post employment
 benefit, is managed through Insurance Companies under a defined benefit
 plan. The present value of obligation is determined based on actuarial
 valuation using the Projected Unit Credit Method, which recognizes each
 period of service as giving rise to additional unit of employee benefit
 entitlement and measures each unit separately to build up the final
 obligation. The obligation for unfunded leave encashment determined as
 other long term benefit plan is recognized in the same manner as
 gratuity.
 
 VI.  Percentage of each category of plan assets to their fair value of
 plan assets as at March 31,2011
 
 The plan assets of the trust has been invested 100% (previous year
 100%) with the schemes of insurance companies.
 
 (b) Provident Fund and Superannuation Fund :
 
 In addition to the above benefits, employee of the company receives
 benefits from provident fund and superannuation fund, a defined
 contribution plan. The employee and employer each make monthly
 contribution to Government''s Provident Fund equal to 12% of the covered
 employee''s eligible salary. The company contributed Rs. 35,220 thousand
 (Previous year Rs. 32,134 thousand) to defined contribution scheme
 during the year ended March 31, 2011.
 
 5.  Commitments and contingencies:
 
                                      March 31,2011     March 31, 2010
                                          (Rs.''000)          (Rs.''000)
 
 i) Outstanding capital commitments         129,366            302,479
 
 ii) Disputed sales tax matters, excise 
 duties contested in appeals                 48,421             46,608
 
 (These disputes mostly relate to 
 arbitrary disallowances of claims of the
 Company under various state laws, which are 
 under appeal. The management is of the view 
 that these demands are not sustainable in 
 law and is hopeful of succeeding in appeals.)
 
 iii) Indemnity bonds executed in favour 
 of excise and customs                       10,000
 
 iv) Guarantees given by the bankers on 
 behalf of the CompanyO(#)                    6,780             21,019
 
 v) Letter of credits                        53,772
 
 vi) Corporate Guarantee for Advance 
 licenses                                   149,844            149,844
 
 vii) Claims against the Company not 
 acknowledged as debts (#)(@)                47,004             45,958
 
 viii) Corporate Guarantee to bank on 
 behalf of Associate Company                 10,000
 
 6 At 31st March 2010, bank guarantees includes four bank guarantees of
 Rs 13,734 thousand in favour of DGFT in respect of EPCG licenses. Such
 Bank guarantees were invoked by the beneficiaries and the company has
 disputed the claim by way of writ petition filed before the Calcutta
 High Court. The Hon''ble High Court had earlier granted an order of
 status quo on September 18, 2003 and since extended from time to time.
 In the meantime, the said guarantees expired on September 30,
 2003.Thereafter the Hon''ble High Court by an Order dated May 11, 2010
 directed the company to renew the said guarantees The said order dated
 May 11, 2010 was modified by a further order dated May 19, 2010
 directing the company to deposit the aggregate amount of guarantees in
 the form of fixed deposits in favour of The Registrar/Calcutta High
 Court, original Side to secure possible claim of DGFT in place of old
 bank guarantees. The company has made the fixed deposit pursuant to the
 said order amounting to Rs 13,800 thousands which have been lodged by
 the Company''s banker Standard Chartered Bank with the DGFT.
 
 At 31st March 2010, the Company had an outstanding provision of Rs
 81,880 thousands for customs duty payable to DGFT due to non-
 fulfillment of export obligations under Advance License and EPCG
 Schemes. Pursuant to direction from the DGFT dated 24th February 2010
 the period for fulfillment of export obligations against 11 Advance
 Licenses was extended by 5 years with effect from 29th September 2009.
 Moreover vide direction from DGFT dated 23rd February 2011, the Company
 got an extension for fulfillment of export obligations under 5 EPCG
 Licenses for a period of 12 years from 30th January 2009 to 29th
 January 2021. Consequent to such directions from DGFT, the Company has
 written back the provision of Rs 81,880 thousand and recognized the
 same as Other Income for the year ended 31st March 2011.
 
 (#) At 31st March 2010, Guarantees given by the bankers on behalf of
 the Company included a bank guarantee of Rs 1,563 thousand obtained in
 connection with execution of a civil contract awarded by State Health
 Department, Govt, of West Bengal. Following a dispute the Health
 Department, Govt, of West Bengal invoked the said Bank Guarantees
 whereupon, the Company challenged such invocation by way of a writ
 petition before the Hon''ble Calcutta High Court. The Hon''ble High Court
 was pleased to allow interim order of injunction dated May 22, 2003
 restraining the respondent not to give any effect to the invocation of
 guarantees till further order with the condition that the guarantee
 shall be renewed from time to time. The bank guarantee expired and has
 not been renewed since the case has been dismissed by the Hon''ble
 Calcutta High Court. The amount has been included in Claims against the
 Company not acknowledged as debts as at 31st March 2011.
 
 (@) Includes claim relating to material rejection amounting to Rs.
 45,441 thousands (Previous year Rs. 45,958 thousand). The management is
 of the opinion that the claim is not tenable.
 
 7.  Previous year''s figures have been regrouped and rearranged
 wherever necessary.