1.  Company has not adopted the enhanced estimated useful life of the
 asset, suggested by registered valuer as this would have resulted in
 not complying with the requirment of charging minimum depreciation
 contemplated by schedule XIV of Companies Act, 1956. Consquently
 company charged off Rs.1877.88 Lakhs (Previous year Rs.2509.04 Lakhs) as
 depreciation on revalued asset for the year. However this has no effect
 on the losses of the year, as this amount is transferred from the
 revaluation reserve.
 
 2.  There is a charge of Rs.7 lakhs on 400 D type and 624 E type quarters
 in favour of Govt. of Karnataka towards subsidy received in terms of
 Subsidised Industrial housing Scheme.
 
 3.  Factory building is on the leased land,measuring 36 Kanals and 13
 Marlas for which extension for lease is under process with J&K
 Government.
 
 4.  With reference to Accounting Policy No.6 depreciation has been
 charged on Fixed assets over their assessed useful life as under.
 
 However, in respect of assets having original cost of Rs.50,000/- and
 above, a residual balance of Rs.5/- has been retained in the books.
 
 * i) Includes Rs.25 Lakhs value of land (Before revaluation) gifted by UP
 Govt. credited to Capital Reserve.
 
 ii) (a) Land measuring 4653.75 sq.metres has been leased to Department
 of Tele communications for a period of 99 years commencing from
 3.10.1983.
 
 (b) Formal Conveyance/lease deeds in respect of Land (excepting part of
 lands at Bangalore & Mankapur) are yet to be executed by the respective
 State Governments.
 
 (c) Land measuring 1256.86 Sq. metres has been leased to Dept. of
 Telecommunications for a period of 99 years commencing from 10.07.1991.
 
 (d) Registered valuers have revalued Land of the company on 31.3.2006.
 Land with original cost of Rs Rs.1000 Lakhs and written down value of
 Rs.1000 Lakhs have been revalued at Rs.228637 Lakhs, resulting in an
 increase in value by Rs. 227637 Lakhs.
 
 (iii) 1.83 acres of land is leased to Southern Railways and 0.286 acres
 of land is leased to ESI corporation.
 
 ** Registered valuers have revalued Buildings of the company on
 31.3.2006. Buildings with original cost of Rs.15277 Lakhs and written
 down value of Rs. 4631 Lakhs have been revalued at Rs. 42388 Lakhs,
 resulting in an increase in value by Rs. 37757 Lakhs.
 
 *** i) Includes Rs.85 Lakhs of plant & machinery given free of cost by
 UNIDO.
 
 ii) Includes Rs.60 Lakhs of plant & machinery cost of which is borne by
 Ministry of Information Technology.
 
 iii) Includes cost of fixed assets worth Rs.5000 Lakhs procured out of
 Grant received from Government of India during 2004-05
 
 iv) includes Rs.937 Lakhs of plant, machinery and Equipments received
 free of cost by Rae Bareli unit.
 
 **** Includes Rs.26.94 Lakhs payment made to J&K Govt for which lease
 deed proceedings are in process.
 
 In respect of Interest charged In excess of State Bank Advance Rate
 w.e.f. 01.04.2009, aggregate refund received upto 31.03.2012 is Rs.
 241.20 Lakhs from State Bank of Hyderabad,State Bank of Patiala,State
 Bank of Travancore and Canara Bank. The remaining Banks vIz.StateBanak
 Of India,State banak of Bikaner& Jaipur, State Bank of Mysore, Bank of
 Baroda.Central Bank of India,Punjab National Bank.Development Credit
 Bank Ltd.Jndus Ind Bank Ltd..Axis Bank Ltd.,Vljaya Bank and Indian Bank
 are expected to refund excess Interest during 2012-2013.
 
 
 1 Corporate information:
 
 ITI Limited is a public Company domiciled in India and incorporated
 under the provisions of the Companies Act, 1956. The Company is
 primarily engaged in the business of Manufacture and sale of
 Telecommunication equipments.
 
 2 Presentation and disclosure of financial statements:
 
 The revised Schedule VI notified under the Companies Act 1956, has
 become applicable to the Company, for preparation and presentation of
 its financial statements for the year ended 31.03.2012. The adoption of
 revised Schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements. However,
 it has significant impact on presentation and disclosures made in the
 financial statements. The Company has also reclassified the previous
 year figures in accordance with the requirements applicable in the
 current year.
 
 3 Insurance and Customs Duty Claims are accounted as and when the
 claims are accepted by respective authorities.
 
 4 Execution and registration of sale deed for assets sold to DRDO forRs.
 2600 lacs during 2003-2004 is under process .
 
 5 As per the Presidential directives and Tripartite agreement on wage
 settlement with employees, wage revision arrears for the period from
 01.01.1997 to 31.03.2000 is to be paid by the Company in a phased
 manner on the improvement of profitability position and also generation
 and availability of funds. Since the company has already been declared
 by BIFR as a sick company and the condition for payment of wage
 revision arrears as per directives/agreement aforesaid are not
 prevalent, company has not provided any liability for payment of
 arrears of wage revision for this period amounting to Rs. 16500 lakhs.
 This amount has been included in the Draft Rehabilitation Scheme(DRS)
 submitted to BIFR.
 
 6 Balances in the accounts of creditors, debtors, advances from
 customers. Claims recoverable, loans and advances, materials with
 fabricators , sub-contractors/others,material in transit, deposits.
 Loans, Creditors, and other payables are subject to confirmation.
 
 7 The company is engaged in the business of manufacture and sale of
 telecommunication equipments and there are no separate reportable
 segments as per Accounting Standard 17 issued by the Institute of
 Chartered Accountants of India.
 
 8 As per Accounting Standard 18 on Related Party Disclosures the
 following transactions are entered into with the Joint Ventures of the
 company viz. India Satcom Ltd and ITI Communications Pte. Ltd,
 Singapore.
 
 9 Since the company has no virtual certainty of sufficient future
 taxable income, no deferred tax asset is being recognised on unabsorbed
 depreciation and carried forward losses of the company under Accounting
 Standard (AS)-22 Accounting for Taxes on Income
 
 10 Accretion/Decretion to stock-in-trade is arrived after considering
 due adjustment to difference in excise duty element in respect of
 opening and closing stock-in-trade.
 
 11 Salaries, Wages & Bonus includes Rs. 42.10 Lakhs as Salaries of
 Srinagar employees presently posted at different units of ITI due to
 disturbed Law & Order situation in Kashmir Vally(P.Y.Rs. 37.51 Lakhs)
 
 12 12.15 acres of land has been agreed to be sold to BMTC not revalued.
 Out of which 8.22 acres already in possession of BMTC.  Sale deed
 registration is pending as Govt, approval is awaited for which an
 advance ofRs. 285 lacs has been received.
 
 13 National Highway Authority has acquired 1.375 acres of land for road
 widening in Electronics City for a compensation of Rs. 146lacs(yet to be
 received) during 2007-08. The land is in possession of NHAI pending
 transfer of title. However value of land continues in the books of
 Accounts. NHAI has also notified for acquisition of about 0.5495 acres
 of land & some building at Palakkad for which compensation is yet to be
 decided.
 
 14 KPTCL is in possession of 5 acres of land and not revalued.
 
 15 Rent from C-Dot aggregating to Rs. 5847.90 lakhs has not been received
 for the last 6 years. The Company has deferred recognition of revenue
 aggregating to Rs. 992.70 Lakhs for the current financial year due to
 uncertainty in receiving the amount which is in conformity with AS-9.
 
 16 Previous year''s figures have been regrouped and reclassified
 wherever necessary to conform to current year''s classification.
 
 17 Figures in brackets indicated in the Accounts reflect negative
 balances.