ITC

(i) Exchange difference in respect of forward exchange contracts to be
 recognised in the Profit and Loss Account in the subsequent accounting
 period amounts to Rs. 0.26 Crore (2008 - Rs. 0.46 Crore).
 
 (ii) (a) Claims against the Company not acknowledged as debts Rs.
 261.36 Crores (2008 - Rs. 278.89 Crores). These comprise:
 
 - Excise Duty, Sales Taxes and other Indirect Taxes claims disputed by
 the Company relating to issues of applicability and classification
 aggregating Rs. 205.41 Crores (2008 - Rs. 200.27 Crores).
 
 - Local Authority Taxes /Cess /Royalty on property, utilities, etc.
 claims disputed by the Company relating to issues of applicability and
 determination aggregating Rs. 38.98 Crores (2008 - Rs. 37.34 Crores).
 
 - Third party claims arising from disputes relating to contracts
 aggregating Rs. 14.05 Crores (2008 - Rs. 37.01 Crores).
 
 - Other matters Rs. 2.92 Crores (2008 - Rs. 4.27 Crores).
 
 (b) Guarantees and Counter Guarantees outstanding
 
 - Excise Rs. 4.24 Crores (2008 - Rs. 4.24 Crores).
 
 - Others Rs. Nil (2008 - Rs. 5.00 Crores).
 
 (c) Uncalled liability on shares partly paid Rs. 26.40 Crores (2008 -
 Rs. 26.40 Crores).
 
 (iii) The status on excise matters which is treated as an annexure to
 these accounts are as outlined in this years Report of the Directors &
 Management Discussion and Analysis under the Excise section. In the
 opinion of the Directors, the Company does not accept any further
 liability.
 
 (iv) Research and Development expenses for the year amount to Rs. 64.08
 Crores (2008 - Rs. 48.43 Crores).
 
 (v) Micro and Medium scale business entities :
 
 There are no Micro, Small and Medium Enterprises, to whom the Company
 owes dues, which are outstanding for more than 45 days as at 31st
 March, 2009. This 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.
 
 (vi) The Companys significant leasing arrangements are in respect of
 operating leases for premises (residential, office, stores, godowns
 etc.). These leasing arrangements which are not non-cancellable range
 between 11 months and 9 years generally, or longer, and are usually
 renewable by mutual consent on mutually agreeable terms. The aggregate
 lease rentals payable are charged as Rent under Schedule 17.
 
 (vii) The following donations were made to political parties during the
 year: Indian National Congress  Rs. 0.50 Crore (2008 - Rs. Nil),
 Bharatiya Janata Party  Rs. 0.50 Crore (2008 - Rs. Nil).
 
 (viii) The disclosures in respect of Employees Stock Option Scheme
 which are outlined in this years Annexure to the Report of the
 Directors & Management Discussion and Analysis and Report on Corporate
 Governance are treated as an annexure to these accounts.