1.  Nature of operations
 
 Indo Rama Synthetics (India) Limited (hereinafter referred to as the
 Company or IRSL) is a manufacturer of Polyester Filament Yarn (PFY),
 Polyester Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips. The
 Company is also engaged in power generation, which is used for captive
 consumption and surplus power is sold through grid.  The Companys
 manufacturing facilities are located at Butibori, Nagpur.
 
 2.  During the current year, pursuant to shareholders approval in
 Annual General Meeting held on 25 October 2010, the Company has
 allotted 20,000,000 Fully Convertible Preferential warrants (FCPs) to
 promoter group companies on 9 November 2010 at Rs. 40.60 per warrant
 (aggregating Rs. 81.20 Crore) as per Securities and Exchange Board of
 India (SEBI) and other guidelines, as applicable. As per the terms of
 the warrants, Rs. 10.15 per warrant (aggregating Rs.  20.30 Crore) have
 been received and balance amount of Rs. 30.45 per warrant (aggregating
 Rs. 60.90 Crore) would be received within 18 months of allotment of the
 warrants. The warrants would be convertible into equity shares within a
 period of 18 months from the date of allotment of warrants at the
 option of the warrant holders. Upon conversion, one warrant will be
 converted into one fully paid equity share of Rs.10 each and amount of
 Rs.  30.60 will be adjusted towards share premium account. (Refer note
 9 of schedule 18)
 
 3.  The Company had lodged claims with an insurance company for the
 loss of certain assets and loss
 suffered due to business interruption under loss of profit policy
 relating to the fire incidence at Butibori plant in 2007-08. Since the
 matter has been under dispute with the insurance company, as per the
 terms and conditions of the above policy, the Company has, during the
 year, initiated the arbitration process for the claim of Rs. 72.94
 Crore for loss of business interruption and for the claim of Rs. 6.43
 Crore for loss of assets. While the said matter is pending
 conclusion by the Arbitral Tribunal, the Company has on a conservative
 basis carried forward insurance recoverable (recorded in the financial
 year ended 31 March 2008) to the extent of Rs. 33.53 Crore (net of
 receipt/adjustment) as advances recoverable, without prejudice to its
 right to claims aggregating Rs. 79.37 Crore. Any adjustments consequent
 to Arbitral proceedings would be accounted for on final settlement of
 the claim.
 
 4.1 Particulars in respect of goods manufactured
 
 Notes:
 
 i) The Company manufactures varying denier/ qualities of fibers/ yarn.
 The above capacity is calculated based on a mix of product range as
 certified by the management and relied on by the auditors being a
 technical matter.
 
 ii) Delicensed vide notification no. 477 (E) dated 27 July 1991 and
 press note No 1 (1998 series) dated 8 June 1998.
 
 iii) TPA-Tonnes per annum
 
 iv) MWPH-Mega watt per hour
 
 v) Pursuant to press note no. 2/2011 dated 8 February 2011, issued by
 Ministry of Corporate Affairs, disclosures required by part - II, paras
 3(i) (a), 3(ii)(a) and 3(ii)(b) of Schedule VI to the Companies Act,
 1956, have not been given.
 
 5.1 Managerial remuneration
 
 As the future liability for gratuity and leave encashment is provided
 on an actuarial basis for the Company as a whole, the amount pertaining
 to the managing director/whole time director is not ascertainable and,
 therefore, not included above.
 
 6.  Disclosure pursuant to Accounting Standard 15 on Employee
 Benefits
 
 Defined contribution plans
 
 An amount of Rs. 4.46 Crore (Previous year Rs. 3.64 Crore) for the
 year, has been recognised as an expense in respect of the Companys
 contribution for Provident Fund and Employees State Insurance deposited
 with the government authorities and have been included under operating
 and other expenditure in the Profit and Loss Account.
 
 Defined benefit plans
 
 Gratuity is payable to all eligible employees of the Company on
 superannuation, death or permanent disablement in terms of the
 provisions of the Payment of Gratuity Act or as per the Companys
 Scheme, whichever is more beneficial.
 
 Discount Rate: The discount rate is estimated based on the prevailing
 market yields of Indian Government securities as at the balance sheet
 date for the estimated term of the obligation.
 
 Salary Escalation Rate: The estimates of salary increases, considered
 in actuarial valuation, take account of inflation, promotion and other
 relevant factors.
 
 7.  Segmental information:
 
 (a) Information about primary business segment:
 
 The Company primarily deals in polyester business and, considering the
 risks and rewards and reporting systems, has viewed Polyester Staple
 Fibre (PSF), Polyester Filament Yarn (PFY) and Draw Texturised Yarn
 (DTY) as one integrated business. The Company is also engaged in sale
 of surplus power. Accordingly, the Company has organised its operations
 into two major business segments, i.e., Polyester and Power.
 
 8.  Related party disclosures
 
 (i) Related parties where control exists: None
 
 (ii) Other related parties with whom Company had transactions:
 
 Key management personnel      Mr. O.P. Lohia, Chairman cum 
                               Managing Director
 
                               Mr. Vishal Lohia, Whole Time Director 
 
 Enterprises over which key
 management personnel or       Indo Rama Retail Holdings Private Limited
                               (IRRHPL) 
 their relatives have 
 significant influence         Indo Rama Petrochem Limited (IRPL),
                               Thailand
 
                               T P T Petrochemicals PCL (TPT Petro),
                               Thailand 
 
                               Lohia Industries (Pvt.) Ltd (LIPL)
 
 9.  Deferred tax liability
 
 * Above excludes deferred tax asset aggregating Rs. 269.60 Crore
 (Previous year Rs. 258.36 Crore) in relation to unabsorbed depreciation
 amounting to Rs. 811.62 Crore, which have not been recorded. The same
 has been a subject matter of litigation by the Income Taxes Authorities
 and appeals in this regard are pending with the appellate authorities.
 
 10.  Capital commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (Net of advances) Rs. 86.53 Crore
 (Previous year Rs. 34.35 Crore).
 
 11.  Contingent liabilities not provided for :
 
                                                         (Rs. crore)
 
                                    As at 31 March    As at 31 March
                                              2011              2010
 
 Excise / customs / service tax 
 matters in dispute/ under appeal            66.84             62.86
 
 Income tax matters in dispute/ 
 under appeal                                 6.47             12.25
 
 Sales tax matters in dispute/ 
 under appeal                                22.68              4.64
 
 Claims by ex-employees, vendors, 
 customers and civil cases                    1.72              1.24
 
 12. During the year, reschedulement arrangements have been reached with
 all the banks and financial institution for its long term borrowings
 except for a bank. The Company has initiated steps to comply with the
 terms and conditions, where applicable, of these reschedulement
 arrangements. In respect of a bank, an understanding has been reached
 to make the payment to the said bank of its dues in monthly
 instalments.
 
 13.  There are no amounts due to be deposited with the Investor
 Education and Protection Fund in respect of unclaimed dividends
 (Previous year Nil).
 
 14.  The figures relating to previous year have been regrouped,
 wherever necessary, to conform to the current years classification.