1.  Nature of operations
 
 Lumax Industries Limited (the Company) is a leading manufacturer and
 supplier of auto components, mainly automotive lighting systems for
 four wheeler and two wheeler applications. The Company has technical as
 well as financial collaboration with Stanley Electric Co. Ltd., Japan.
 
 2.  Segment Information
 
 Business Segments:
 
 The Company produces various types of automotive lighting systems.
 Since the Companys business activity falls within a single business
 segment, there are no additional disclosures to be provided under
 Accounting Standard-17 Segment Reporting other than those already
 provided in the Financial Statements.
 
 Geographical Segments*
 
 The geographical segment comprises of domestic and overseas market. The
 following table shows the distribution of the Companys consolidated
 sales by geographical market, regardless of where the goods were
 produced:
 
 3.  Related Party Disclosure
 
 Key Management Personnel
 
 Mr. D. K. Jain (Chairman & Managing Director)
 
 Mr. Deepak Jain (Sr. Executive Director)
 
 Mr. Anmol Jain (Sr. Executive Director)
 
 Mr I. Abe (Sr. Executive Director)
 
 Mr A. Ishii (Executive Director)
 
 Relatives of Key Management Personnel
 
 Mr. U. K. Jain (Brother of Chairman)
 
 Mr. M. K. Jain (Brother of Chairman)
 
 Mrs. Usha Jain (Spouse of Chairman)
 
 Mr. Rajan Jain (Nephew of Chairman)
 
 Enterprise significantly influenced by
 
 Key Management Personnel or their Relatives
 
 Lumax Auto Technologies Ltd.
 
 Lumax DK Auto Industries Ltd.
 
 Lumax Tour & Travels Ltd.
 
 Lumax Investment and Finance (P) Ltd. (Merged with Sheela
 
 Finance Pvt. Ltd.)
 
 Lumax Finance Private Limited (Formerly Sheela Finance Pvt. Ltd)
 
 Deepak Auto Ltd.
 
 Mahavir Udyog
 
 D.K. Jain & Sons (HUF)
 
 Lumax Automotive Systems Ltd.
 
 Lumax International (P) Ltd.
 
 Lumax Auto (P) Ltd.
 
 Bharat Enterprises
 
 Lumax Cornaglia Auto Technologies Pvt. Ltd.
 
 Associate Stanley Electric Co. Ltd., Japan
 
 Joint Venture SL Lumax Ltd.
 
 In case of assets given on Lease
 
 a) Finance Lease
 
 The Company has leased out plant and machinery and furniture on finance
 lease. The lease term is for three years after which the legal title is
 passed to the lessee. There is no escalation clause in the lease
 agreement. There are no restrictions imposed by lease arrangements.
 
 4.  Contingent Liabilities not provided for
 
 S.No.  Particulars                       2010-11           2009-10
                                            (Rs.)             (Rs.)
 
 (i) Bills of exchange discounted 
 from a bank.                         155,278,747       136,109,465
 
 (ii) Demand raised by ESIC department 
 against short contribution paid
 by the Company, being disputed by 
 the Company.                           2,880,138         2,880,138
 
 (iiii) Demand raised by Sales Tax 
 authorities against purchase tax on
 inter unit stock transfers, being 
 disputed by the Company.                 906,111         1,736,251
 
 (iv) Various other claims made 
 against the Company not acknowledged
 as debts, being disputed by the 
 Company.                               1,402,682           391,081
 
 (v) Income Tax demand in respect of 
 Assessment Year 2004-05 for which
 the Department has filed an appeal 
 with ITAT.                                93,072           934,369
 
 (vi) In respect of additions made by 
 the Assessing officer for Transfer 
 Pricing for Assessment Year 2004-05 
 for which the                          1,441,121         1,441,121
 department has filed an appeal 
 with ITAT.
 
 (vii) Income Tax demand in respect 
 of Assessment Year 2005-06 for which
 the Department has filed an appeal 
 with ITAT.                            27,884,526        27,884,526
 
 (viii) Income Tax demand in respect 
 of Assessment Year 2006-07 for which
 the Company has filed an appeal 
 before ITAT.                           5,699,097                 -
 
 (ix) Income Tax demand in respect of 
 Assessment Year 2007-08 for which
 the Company has filed an appeal 
 before Dispute Resolution Panel       31,275,736                 -
 against the Draft order
 
 (x) Demand raised by BSES Rajdhani 
 Power Ltd for which the Company
 has filed a writ petition in High 
 Court of Delhi.                                -         2,260,541
 
 (xi) Export Obligation to be 
 undertaken by the Company under 
 EPCG licenses.                        22,665,071        17,677,486
 
 (xii) Claims against the Company 
 not acknowledged as debts.                     -         6,870,264
 
 Based on the favourable decisions in similar cases/legal opinions taken
 by the Company, the Company believes that it has good cases in respect
 of all the items listed under (ii) to (ix)above and hence no provision
 there against is considered necessary.
 
 5.  Gratuity
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 The scheme is funded with an insurance company in the form of a
 qualifying insurance policy.
 
 The following tables summarise the components of net benefit expense
 recognised in the profit and loss account and the funded status and
 amounts recognised in the balance sheet for gratuity.
 
 6.  Details of Research and Development expenses are as follows:
 
 A.  The Company has incurred expenses on its research and development
 centre at Gurgaon, approved and recognised by the Ministry of Science &
 Technology, Government of India.
 
 7.  Pursuant to completion of negotiations with its customer in
 relation with the Companys investment in a plant at Singur, West
 Bengal and after giving consideration to its alternative plans,
 management has assessed the carrying value of its assets and made
 adequate provisions as considered necessary in the last year.
 
 8.  At the instance of a customer who has initiated International
 Financial Reporting Standards (IFRS) implementattion, the Company has
 negotitated and has, at the year end, sold certian moulds which were
 financed by the said customer. For the settlement of transaction,
 moulds of the net book value of Rs. 2,616.81 lacs have been sold for
 Rs. 1,797.28 lacs resulting in loss on sale of fixed assets amounting
 to Rs. 819.53 lacs.
 
 9.  Excise duty on sales amounting to Rs. 883,819,416 (Previous year
 Rs.570,947,081) has been reduced from Sales in Profit & Loss Account
 and Excise Duty on Decrease/ (Increase) in Stock amounting to
 Rs.(605,466) (Previous year Rs. 5,547,489) has been considered as
 (income)/ expense in Schedule 18 of the financial statements.
 
 10.  Previous Year Comparatives
 
 Previous years figures have been regrouped where necessary to conform
 to this years classification.