1.  Loans and Advances :
 
 1.1 Loans and advances include refund claims for Custom Duty on project
 importsRs. 378.71.Million (Previous year Rs.378.71Million) and Commercial
 Taxes Rs. 476.34 Million (previous year Rs. 500.63 Million).  A further
 refund due towards Commercial Taxes Rs. 2884.43 Million is also included
 therein for which there is a matching liability to pay to customers on
 receipt of the refund which is included under Sundry Creditors
 (Others).
 
 2.2. Sales tax deferment loan shown under Unsecured Loans includes a
 sum of Rs. 290.17 Million (Previous Year Rs. 290.17 Million) relating to
 CST on excise duty included under refund from Commercial Tax Department
 (refer note no.1.1 above) for the years 2000-01and 2001-02, which were
 earlier paid under protest and are now being claimed as sales tax
 deferment loan by the Company.
 
 3.  The Company is yet to receive response for its confrmation letters
 from some of the Sundry Debtors, Loans and Advances and Sundry
 Credito Rs.  Reconciliation and adjustment will be effected on receipt
 of confrmations, which in the opinion of the management will not be
 significant.
 
 4.  Following expenses are included under other heads of expenses
 Insurance charges amounting to Rs. 17.13 Million (Previous year Rs. 20.46
 Million) relating to crude purchase and staff welfare has been charged
 under respective heads.
 
 5.  Wage revision
 
 The Company during the financial year has finalised the wage revision of
 unionised employees effective from 01.04.2007. The quantum of wage
 arrears relating to period from 01.04.2007 to 31.03.2010 net of
 provision amounting to Rs. 405.00 Million is shown under Payment to and
 Provision for Employees in Schedule P.
 
 6.  Dues to Micro, Small & Medium enterprises:
 
 The classifcation of the suppliers under Micro, Small and Medium
 Enterprises Development Act, 2006 is made on the basis of information
 made available to the Company. The Company has neither paid any
 interest in the terms Section 16 of the above said Act nor any interest
 remain unpaid and no payments were made beyond the ''appointed date'' to
 such enterprises during the year ended 31.03.2011. Amount outstanding
 to these enterprises for the year ended 31st March, 2011 is Rs. Nil
 (Previous year: Rs. 0.74 Million)
 
 7.  Disclosures as required under Accounting Standard 15 (Revised) is
 given below:
 
 7.1.  Brief Description: A general description on the type of defined
 Beneft Plans are as follows:
 
 a) Earned Leave Beneft (EL):
 
 Accrual - 32 days per year
 
 Accumulation up to 300 days allowed
 
 EL accumulated in excess of 15 days is allowed for encashment while in
 service provided the EL encashed is not less than 5 days.
 
 b) Sick Leave (SL):
 
 Accrual - 10 days per year
 
 Encashment while in service is not allowed
 
 Encashment on retirement is permitted and entire accumulation is
 allowed for encashment
 
 c) Gratuity:
 
 15 days salary for every completed year of service. Vesting period is 5
 years and the payment is restricted to Rs. 10, 00,000.
 
 d) Long Service Emblem:
 
 On completion of each milestone of service from the date of joining and
 also at the time of retirement, employees will be gifted with Gold
 Coin, weight depends on the milestone of service completed.
 
 e) Post Retirement Medical benefits:
 
 After retirement, on payment of one time employee''s share of premium,
 the employee and his/her spouse will be covered under Group Medical
 Insurance. The cover amount depends on designation of employee at the
 time of retirement.
 
 f) Retirement benefits:
 
 At the time of superannuation, employees are entitled for reimbursement
 of expenses towards travel, transportation of personal effects from
 their place of retirement to the new location upto certain limits
 depending on the designation of the employee at the time of retirement
 and one month''s salary as settling allowance.
 
 8.  Segment Reporting
 
 The Company is engaged in the business of refining crude oil, all
 activities of the Company revolve around this business and the
 operations are in India. As such there is no other reportable segment
 as defined by the Accounting Standard 17 - Segment Reporting issued
 under the Company (Accounting Standard) Rules, 2006.
 
 9.  Information as per Accounting Standard (AS-18) on Related Party
 Disclosures is given below
 
 9.1.  The Company is a state controlled enterprise and the transactions
 with other state controlled enterprises are not required to be
 disclosed as per AS-18.
 
 9.2.  Key Management Personnel: Functional Directors:
 
 (i) Shri. U.K.Basu, Managing Director
 
 (ii) Shri L.K.Gupta, Director (Finance).- Part of the period upto
 31.05.2010 
 
 (iii) Shri P.P.Upadhya, Director (Technical) - Part of the period from
 30.09.2010.  Remuneration paid to the above-mentioned Directors during
 the year is Rs. 6.92 Million (Previous year Rs. 5.63 Million) - Refer Note
 No. 10 given below
 
 The above fgures do not include Provision for Leave, Gratuity and Post
 Retirement benefits as per Revised AS-15 since the same were not
 ascertained for individual employees.
 
 The performance related pay is considered on paid basis
 
 Loan & Advances outstanding from Directors – Rs. Nil (Previous year - Rs.
 Nil),
 
 Maximum amount of Loans & Advances outstanding during the year ended
 31st March, 2011, Rs.Nil (previous year Rs. 0.42 Million)
 
 10.  Operating Leases:
 
 10.1.  The company has taken various premises under cancellable
 operating lease.
 
 10.2.  These lease agreements are normally renewed on expiry of the
 term.
 
 10.3.  Lease rental expenses for the year ended 31st March, 2011 in
 respect of above operating leases are Rs. 44.22 Million (previous year Rs.
 40.87 Million)
 
 11.  Current Tax:
 
 11.1. Provision for Current Tax is made in accordance with the
 provisions of the Income Tax Act, 1961.
 
 12.  Disclosure on Research & Development Expenditure
 
 The Company during the year has carried out activities relating to
 study of Crude Assay, Modified Bitumen, Liquid effluents, VG Bitumen &
 Additive Evaluation. as a part of its R & D activities. The company has
 obtained approval of competent authority to establish R&D facilities
 for carrying out development work w.r.t Polypropylene unit, PFCCU Unit,
 Corrosion Monitoring, Development of Modified bitumen and Bitumen
 Emulsions and effluent & Spent Caustic Treatment. The total expenditure
 incurred by the company during the year on the above mentioned Research
 & Development activities is Rs. 1.11 Million (Previous Year - Rs. 1.83
 Million).
 
 12.2 Contingent Liabilities not provided for in respect of:
 
 1. Corporate Guarantee given by the Company towards loan of Rs. 3,372.30
 Million sanctioned by certain bankers / financial institutions to New
 Mangalore Port Trust (NMPT) for construction of Jetties. Amount
 outstanding as at the close of the year ended 31st March, 2011, after
 adjusting the repayment made by NMPT is Rs. Nil (Previous Year Rs. Nil).
 
 2.  Claims against the Company not acknowledged as debt :
 
                                                   (` in Million)
 
 Sl.  Particulars                                As on       As on
 
 No                                          31.03.2011   31.03.2010
 
 1 Claims of Contractors / vendors in 
 Arbitration / Court                              352.47      338.65
 
 Some of the contractors for supply and 
 installation of equipment have lodged claims 
 on the Company seeking revision of time of 
 completion without liquidated damages, 
 extended stay compensation and extra claims
 etc., which are contested by the Company as 
 not admissible in terms of the provisions of 
 the respective contracts. In case of 
 unfavourable awards the amount payable would 
 be capitalised Rs. 314.74 million / 
 Reimbursable Rs. 37.73 million [Previous 
 year Rs. 300.92 million and Rs.
 37.73 million respectively]
 
 2 Claims / counter claims of Customers
 
 (a) The Company had gone into an international     16.17      14.31
 arbitration at London against one of its export
 customers. The arbitration Tribunal has dismissed
 the Company''s claims relating to throughput loss
 and non-full  fllment of contractual 
 obligations and has ordered the 
 Company to bear the customer''s
 advocate cost along with refund of part of adhoc
 amount paid by the customer along with interest.
 The Company has preferred an appeal in the
 Mumbai High Court against this arbitral award. In
 case of unfavourable award the amount payable
 would be debited to Profit & Loss Account.
 
 (b) One of the customers has lodged a claim for    85.20      85.20
 damages for pre-closure of the contract. The
 Company has disputed the claim basis Force
 Majure condition. In case of non acceptance
 of the stand taken by the Company the amount
 will be debited to the Profit & Loss Account.
 
 3 Others
 
 (a) The New Mangalore Port Trust (NMPT) has       606.42     177.38
 claimed from the Company notifed wharfage
 charges for one of the Jetty. The company
 has approached the Tariff Authority of Major
 Ports (TAMP) for  fxation of the wharfage rates
 based on Tariff Policy. The differential amount
 between the wharfage rate to be fixed by the
 TAMP and the wharfage rate being paid by the
 Company, if any, will be debited / credited to
 the Profit & Loss Account.
 
 (b)This represents the potential liability which  133.67     133.67
 the   Company    has    undertaken   towards
 reimbursement to lessors in case of any
 liability in their respective tax assessments. In
 case of any claim by lessors the same will be
 debited to Profit & Loss Account.
 
 4 Total                                          1193.93     749.21
 
 In respect of all these claims, which are being contested by the
 Company as not admissible, it is not practicable to make a realistic
 estimate of the outfow of resource, if any, for settlement of such
 claim pending resolution / award from Arbitrators / Court.
 
 3.  Disputed tax / Duty demands pending in appeal:
 
 a) Income Tax: Rs. 373.90 Million (Previous Year Rs. 244.51 Million).
 (against this Rs. 251.41 Million is adjusted / paid under protest and is
 included under loans & advances.)
 
 b) Commercial Tax: Rs. 1217.84 Million (Previous Year Rs. 1,188.76 Million)
 - includes Rs. 524.87 Million (Previous Year Rs. 500.46 Million) relating
 to projects. (Against this Rs. 377.20 Million is paid under protest and
 included under loans & advances.)
 
 c) Excise Duty: Rs. 360.26 Million (Previous Year Rs. 146.45 Million).
 (against this Rs. 41.08 Million is paid under protest and is included
 under loans & advances.)
 
 d) Customs Duty: Rs. 130.19 Million (previous year Rs. 128.82 Million).
 
 4.  The estimated amount of contracts remaining to be executed on
 capital account and not provided for (net of advances) Rs. 57,527.76
 Million (Previous year Rs. 93,391.12 Million).
 
 13.  Previous year''s fgures have been re-grouped / re-arranged wherever
 necessary to conform to the current period presentation.