Lanco Industries

1.  Contingent Liabilities not provided for
 
                                            2008-09           2007-08
                                         (Rs. in Lakhs)   (Rs. in Lakhs)
 
 a) Guarantees given by banks on behalf 
 of the Company.                              1,214.16          922.24
 b) Bills discounted with banks                      -          591.58
 c) Various demands raised, which in the 
 opinion of the management are
 not tenable and are pending with various 
 forums / authorities:
 
 i) Sales Tax                                   713.41          561.93
 ii) Excise Custom Duty & Service Tax         4,313.00          288.00
 iii) Income Tax                                  3.07            3.07
 
 2.  Estimated amount of Capital contracts not provided for (net of
 advances) 385.88 992.10
 
 3.  In the opinion of the Management, Current Assets and Loans &
 Advances have the value at which these are stated in the Balance Sheet,
 if, realized in the ordinary course of business, unless otherwise
 stated and adequate provisions for all known liabilities have been made
 and are not in excess of the amount reasonably required
 
 4.  Balances of Sundry Debtors / Creditors are subject to confirmation
 and reconciliation, if any.
 
 5.  Segment Reporting
 
 The Companys main business is manufacturing and selling pipes. In
 addition, the Company is also manufacturing& selling cement, Producing
 power for captive use which does not qualify as a reportable segment as
 per Accounting Standard - 17 on segment reporting issued by the
 Institute of Chartered Accountants of India. Accordingly, in the
 opinion of the management Pipes is the only reportable segment.
 
 6.  Disclosure of Related Parties / Related Party Transactions
 
 Name of the Related Parties with whom transactions were carried out
 during the year and description of relationship:
 
 a.  Associate Company:
 
 M/s Electrosteel Castings Limited
 
 b.  Key Management Personnel & their relatives (KMP):
 
 Shri. Mayank Kejriwal, Managing Director.
 
 c.  Enterprise where KMP / relatives of KMP have significant influence
 or control Lanco Hills Technology Park Private Limited.
 
 7. As stipulated in AS-28, the Company assessed potential generation
 of economic benefits from its business units and is of the view that
 assets employed in continuing business are capable of generating
 adequate returns over their useful lives in the usual course of
 business, there is no indication to the contrary and accordingly, the
 management is of the view that no impairment provision is called for in
 these accounts.
 
 8.  Disclosure of loans and advances as per the requirement of Clause
 32 of the listing agreement with the Stock Exchanges in India.
 
 (i) The Company does not have any subsidiary and it has not given any
 loans and advances in the nature of loans to its associates.
 
 (ii) Interest free loans as per general rules of the Company have been
 given to its employees. Aggregate amount of such advances and loans
 outstanding at the year end is Rs. 36.66 lakhs (Previous year Rs. 27.74
 lakhs)
 
 9.  Previous Years Figures have been re-grouped / re-arranged wherever
 necessary.