Opto Circuits India

1.  Contingent Liability:
 
 The Company has issued corporate guarantee in favour of State Bank of
 India and State Bank of Travancore against line of credit sanctioned to
 its subsidiary Advanced Micronic Devices Limited for Rs. 1787.00 Lacs
 (Previous Year Rs. 1977.00 Lacs). The Company has also issued corporate
 guarantee issued in favour of SBI against line of credit sanction to
 its subsidiary Altron Industries Private Limited for Rs. 3400.00 Lacs
 (Previous Year - Nil).
 
 Letter of Credits: Rs. 529.00 Lacs
 Bank Guarantees: Rs. 32.00 Lacs
 
 2.  The Company has recognized and provided for the liability towards
 gratuity and un-availed en-cashable earned leave on accrual basis.
 
 2.1 Income Tax department has raised a demand for tax of Rs. 14.16
 Lacs for the AY 2004-05 for which company has preferred an appeal
 before the Commissioner of Income Tax (Appeal) III. Pending disposal of
 this Company has not provided liability for Income Tax.
 
 3. Deferred Tax Asset has not been recognized as there is no virtual
 certainty supported by convincing evidence that sufficient future
 taxable income will be available for such Deferred Tax Asset to be
 setoff. Tax expenses towards deferred tax liability do not arise as the
 units are 100% EOU and SEZ and income is covered under section 10B and
 10AA of the Income Tax Act, 1961
 
 4.  Product Development Expenses.
 
 An Amount of Rs. 6.94 Lacs has been charged to Profit & Loss account
 which is 1/5th of Rs. 18.13 Lacs (2nd Year) and 1/5th of Rs. 16.57 Lacs
 (1st Year) shown as product development expenditure of embedded
 software for Pulse Oximeter.
 
 5.  Segment wise reporting (Rs. Lacs)
 
 a.  The company has mainly one business segment of Medical Electronic
 Products.
 
 b. The company has geographical region wise segments of the customers
 is as shown below, region wise profitability can not be ascertained.
 
 6. Related Party Disclosure:
 
 A) List of related parties where companies management control exists
 
 (a) SUBSIDIARIES
 
 (i) ADVANCED MICRONIC DEVICES LIMITED
 
 (II) MEDIAIDINC,
 
 (III) ALTRON INDUSTRIES PRIVATE LIMITED.  (iv) EUROCOR GMBH,
 
 (v) DEVON INNOVATIONS PRIVATE LIMITED (vi) ORMED MEDICAL TECHNOLOGY
 LIMITED (vii) CRITICARE SYSTEMS INC., (viii) OPTO INFRASTRUCTURE
 LIMITED
 
 (b) KEY MANAGEMENT PERSONNEL Name of Related Party Relationship
 
 Vinod Ramnani Key Management Personnel
 
 Usha Ramnani Key Management Personnel
 
 Jayesh Patel Key Management Personnel
 
 7.  Pursuant to the amendments in the Indian Income Tax Act, the
 Company has calculated its tax liability after considering Minimum
 Alternative Tax (MAT). The MAT liability can be carried forward and
 setoff against future tax liabilities. Accordingly Rs.1,997.04 Lacs was
 carried forward and shown under Loans & Advances in the Balance sheet
 as of March 31, 2009 which includes carried forward balances of Rs.
 1,191.77 Lacs for FY 07-08 and Rs. 805.27 Lacs for FY 08-09.
 
 8.  Dividend paid in foreign currency for the year 2007-08 is US$ 6.71
 Lacs towards 100.21 Lacs Equity Shares held by NRIs and foreign
 nationals.
 
 9.  Previous year figures have been regrouped & reclassified to
 correspond with the current years classification.