1) Fixed Deposits Rs.13,43,02 (Rs.19,88,77) with Scheduled Banks
 include those pledged to Sales Tax Department Rs.3,82 (Rs.3,82).
 
 2) Tax deducted at source on interest received Rs.83,26 (1,19,87)
 
 3) Interest received from Banks (under other income) is net of Interest
 paid Rs. 5,02 (Rs.1,07)
 
 4) The aggregate working capital limit of Rs.11,00,00 (Rs.11,00,00)
 sanctioned by Banks are secured by hypothecation of imported and
 indigenous Raw Materials, Components, Spares, Goods in process and
 Finished Goods.
 
 2.  Defined Benefit Plan:
 
 Defined benefit plan as per actuarial valuation as on 31st March, 2011
 and recognised in the financial statements in respect of Employee
 Benefit Scheme: (AS - 15)
 
 6.  The Company received Show Cause Notices in the year 1996 from the
 Commissioner of Commercial Taxes for the Years from 1978-79 to 1985-86
 and 1987-88 seeking to revise the orders of Sales Tax Appellate
 Tribunal / Appellate Deputy Commissioner, allowing exemption on stock
 transfers made to the Depots for the above years in the appeals filed
 by the Company. The Sales Tax Department also filed Tax Revision Cases
 for the years from 1978-79 to 1980-81, which were set-aside by the High
 Court.
 
 For the years 1981-82 to 1985-86 and 1987-88 however, on a reference on
 the question of Revisional Jurisdiction, to a larger Bench of A.P. High
 Court, order was passed in October 2001 in favour of the Company,
 quashing the Revisional Notices issued by the Commissioner of
 Commercial Taxes.
 
 Against this, A.P. Salestax Authorities have filed Special Leave
 Petitions before the Supreme Court for the above years, which have been
 admitted. The Apex Court however did not grant the departments request
 for stay of operation of High Courts order.
 
 The disputed sales tax liability in respect of these years viz. from
 1981-82 to 1985-86 and 1987-88 is Rs.20.62 Crores which remains to be
 provided for. In respect of the completed assessments for the
 subsequent years viz., 1988-89 to 2007-08 no such liability arose as
 the Assessing Authority himself has allowed exemption of sales-tax on
 the stock transfers made by the company.
 
 7. No Provision has been made for
 
 a) Differential Sales Tax of Rs.111.09 Lakhs levied by APGST
 authorities for the period from April 2001 to March, 2005, based on
 sales turnover of Companys Authorised Wholesale Dealer, treating them
 as related persons under the amended provisions of the Sales Tax Act.
 The company has so far paid Rs.110.42 lakhs (Rs.75.59 Lakhs) towards
 the said disputed sales tax under protest.
 
 b) Part of Gratuity payable to Managing Director estimated at Rs.37
 Lakhs. (60 Lakhs)
 
 8. Related party disclosures : Are disclosed as per Accounting
 Standards 18
 
 Associates under Common Control:
 
 a) Panasonic Corporation
 
 b) Panasonic Asia Pacific Pte Ltd
 
 c) Panasonic Carbon India Co. Ltd
 
 d) Panasonic Home Appliances India Co. Ltd
 
 e) Panasonic Energy India Company Limited Associates :
 
 f)  Apollo Hospitals & Enterprises Ltd  k) Kalpatharu Enterprises 
                                             Pvt. Ltd
 
 g) Sindoori Travels                     l)  Radiohms Properties Pvt. Ltd
 
 h) Apex Agencies                        m)Radiohms Agencies
 
 i) Associated Electrical Agencies       n) Radiohms Agencies Ltd
 
 j) P.Obul Reddy & Sons                  o) R. P. Electronics
 
 Key Managerial Personnel                Mr. P. Dwarakanath Reddy
 
 Mr. R.P. Khaitan
 
                                           As at           As at
 
                                        Mar.31, 2011   Mar.31, 2010
                                        Rupees 000s   Rupees 000s
 
 9.  Other Contingent Liabilities
 
 a) Estimated amount of contracts 
 remaining to be executed on
 Capital Account and not provided 
 for (Net of Advances)                     24,00           24,00
 
 b) Letters of Credit                      95,43            1,82
 
 c) Bills Discounted With the 
 Bankers and others                     11,91,54        11,48,53
 
 d) Sales Tax disputed in Appeals           2,15            2,15
 
 e) Income Tax disputed in Appeals         33,82           10,91
 
 10.  Confirmation of Balances in respect of Debtors, Loans and
 Advances, Creditors etc., remains to be received in some cases.
 
 11.  Figures has been given in Thousands of Rupees.
 
 12.  Figures in brackets in the Notes on Accounts refer to those of the
 previous year.
 
 13.  Figures for the previous year have been regrouped wherever
 necessary to conform to those of the Current Year.
 
 14.  Schedules 1 to 11 form an integral part of the Accounts and have
 been duly authenticated.