1 RELATED PARTY TRANSACTIONS
 
 (a) Names of companies where control exists:
 
 Holding Company Koninklijke Philips Electronics N.V
 
 Subsidiary Companies Alpha X-Ray Technologies (India) Private Limited
 (AXTPL)*
 
 Meditronics Healthcare Private Limited (MHPL)*
 
 * Ceased to be Subsidiary companies with effect from April 1, 2009.
 
 (i) Fellow Subsidiary Companies As per list given below
 
 Overseas Fellow Subsidiary Companies:
 
 Feidong Lighting Company Limited
 
 Feixin Lighting Co., Ltd.
 
 Genlyte Thomas Group LLC
 
 Lumec Inc.
 
 Massive AG
 
 MASSIVE Hungaria Villamosipari Termelo Kft.
 
 NARVA Speziallampen GmbH
 
 Philips & Yarning Lighting Co., Ltd.
 
 Philips (China) Investment Company, Ltd.
 
 Philips Automotive Lighting Hubei Co., Ltd.
 
 Philips Chilena SA
 
 Philips Consumer Lifestyle BY
 
 Philips Consumer Luminaires Shenzhen Co. Ltd.
 
 Philips da Amazonia Industria Eletronica Ltda.
 
 Philips Danmark A/S
 
 Philips Domestic Appliances and Personal Care
 
 Company of Zhuhai SE2, Ltd.  Philips Electronics (Thailand) Ltd.
 Philips Electronics and Lighting, Inc.  Philips Electronics Hong Kong
 Limited Philips Electronics Korea Ltd.  Philips Electronics Middle East
 & Africa BV Philips Electronics Nederland BV Philips Electronics North
 America Corporation Philips Electronics Singapore Pte Ltd.  Philips
 Electronics UK Limited Philips Electronics Vietnam Limited Philips
 Eletronica do Nordeste S.A.
 
 Philips Export BY
 
 Philips France
 
 Philips Holding USA Inc.
 
 Philips Industries Hungary Electronical Mechanical Manufacturing
 
 & Trading Limited Liability Company Philips Innovative Applications
 Philips International BV Philips Lighting Bielsko Sp.z.o.o.  Philips
 Lighting BV
 
 Philips Lighting Electronics (Shanghai) Co., Ltd.  Philips Lighting
 Luminaires (Shanghai) Co., Ltd.  Philips Lighting Malaysia Sdn. Bhd.
 Philips Lighting Poland SA Philips Medical Systems (Cleveland), Inc.
 Philips Medical Systems DMC GmbH Philips Medical Systems Nederland BV
 Philips Medical Systems Technologies Ltd.  Philips Medizin Systeme
 Boblingen GmbH Philips South Africa (Proprietary) Limited Philips
 Taiwan Ltd.  Philips Technologie GmbH Philips Ultrasound, Inc.  Philips
 Warehouse & Services BV PT Philips Indonesia Respironics, Inc.  Turk
 Philips Ticaret Anonim Sirketi VMI Industria e Comercio Ltda.
 
 (ii) Names of the Employee Trusts with whom transactions have taken
 place during the year:
 
 Philips Electronics India Ltd Management Staff Provident Fund Trust
 Philips India Ltd Superannuation Fund.
 
 (b) Names of Directors with whom transctions have taken place during
 the year:
 
 (1) Executive Directors:
 
 (a) Mr Murali Sivaraman
 
 (b) Mr. Cornells J.M.Reuvers
 
 (c) Mr Alexius Collette
 
 (2) Non-Executive Directors:
 
 (a) Mr S.M.Datta
 
 (b) Mr S.Venkataramani
 
 (C) OTHER DISCLOSURES:
 
 Inter segment revenue / result:
 
 — Inter-segment revenue has been recognised at competitive prices.
 
 — Allocation of corporate expenses to other segments is at cost
 
 — All profits / losses on inter segment transfers are eliminated at
 Company level.
 
 2 EXCEPTIONAL ITEMS INCLUDE:
 
 (a) Rs.342 (2008 - Rs. 142) - Profit on sale of property.
 
 (b) Pursuant to restructuring of Consumer Lifestyle segment
 operations, the Company has provided for (i) Rs.46 (2008 - Rs.Nil) on
 account of inventory write down to the realizable value and (ii) Rs.129
 (2008 - Rs.Nil) being expenses in connection with restructuring.
 
 (c) Rs.5 (2008 - Rs.Nil) - EmployeesVoluntary Retirement Scheme.
 
 (d) Rs. Nil (2008 - Rs.47) Net surplus on divestment of business
 relating to Set Top Boxes to PACE Micro Technology (India) Private
 Limited
 
 (e) Rs. Nil (2008 - Rs. 17) - Write back of provision created for
 divestment of business relating to Financial Services in 2007.
 
 3 The Company uses forward exchange contracts to hedge its exposure in
 foreign currency. The information on forward contract is as follows:
 
 (c) Exchange loss in respect of forward exchange contracts to be
 recognised in subsequent accounting periods - Rs.Nil (2008 - loss - Rs.
 13).
 
 (d) Pursuant to announcement of the Institute of Chartered Accountants
 of India (ICAI) dated March 29, 2008 on accounting of derivatives, the
 Company has recognised Mark-to-Market (MTM) losses - Rs.4 (2008 - Rs.
 Nil) on forward contracts outstanding as at December 31, 2009.
 
 4 EMPLOYEES SHARE-BASED PAYMENTS:
 
 Certain employees of the company are eligible for stock options granted
 by the Holding Company (KPENV). In conformity with the guidance note
 on Accounting for Employee Share-based Payments notified in the
 Companies (Accounting Standards) Rules. 2006 in respect of the grants
 made on or after 01 April 2005, the following disclosures are made:
 
 (a) Method adopted for valuation:
 
 Stock compensation expenses under the Fair Value Method are
 determined based on the Fair Value of the Options and amortised over
 the vesting period. The Fair Value of the Options is determined using
 Black-Scholes option pricing model.
 
 (b) Nature and extent of Employee Share-based Payment Plans:
 
 As from 2003 onwards, the Holding Company (KPENV) issued restricted
 share rights that vest in equal annual installments over a three-year
 period. Restricted shares are KPENVs shares that the grantee will
 receive in three successive years, provided the grantee is still with
 the Company on the respective delivery dates. If the grantee still
 holds the shares after three years from the delivery date, Philips will
 grant 20% additional (premium) shares, provided the grantee is still
 with Philips.
 
 As from 2002, the Holding Company granted fixed stock options that
 expire after 10 years. Generally, the options vest after 3 years;
 however; a limited number of options granted to certain employees of
 acquired businesses contain accelerated vesting. In prior years, fixed
 and variable (performance) options were issued with terms of ten years,
 vesting one to three years after grant.
 
 5 Amalgamation of Alpha X-Ray Technologies (India) Private Limited
 (AXTPL) and Meditronics Healthcare Private Limited (MHPL) with the
 Company
 
 (a) Pursuant to the Scheme of Amalgamation of the erstwhile Alpha X-Ray
 Technologies (India) Private Limited (AXTPL) and Meditronics Healthcare
 Private Limited (MHPL) with the Company as sanctioned by the Honble
 High Court Mumbai on February 26, 2010 and filed with the Registrar of
 Companies on March 26, 2010, the undertakings of AXTPL and MHPL were
 transferred to and vested in the Company on going concern basis from
 appointed date April 1, 2009. Accordingly, the Scheme has been given
 effect to in these accounts.
 
 (b) AXTPL and MHPL are well established manufacturers and sellers of
 Cardiovascular X-Ray systems and General X-Ray machines.
 
 (c) The amalgamation has been accounted for under the Pooling of
 Interests method as prescribed by Accounting Standard (AS) 14 on
 Accounting for Amalgamations notified in the Companies (Accounting
 Standards) Rules. 2006. Accordingly, the assets, liabilities and
 reserves of erstwhile AXTPL and MHPL as at April 1, 2009 have been
 taken over at their book values.
 
 (d) As provided in the Scheme of Amalgamation, 957,600 and 5,000,000
 equity shares of Rs.10/- each held in AXTPL and MHPL respectively stand
 cancelled.
 
 (e) Net deficit of Rs.888 between the Investments in AXTPL and MHPL
 Rs.947 and Nominal value of Equity Share Capital in AXTPL and MHPL
 Rs.59 has been debited to General Reserve.
 
 (f) In view of the aforesaid amalgamation with effect from April 1,
 2009, the figures for the current year are not comparable to those of
 the prior year
 
 6 Dividend remitted for January - December 2008 - Rs. 122 (January -
 December 2007 - Rs. 136) on 61,094,012 equity shares to 2 non-resident
 shareholders.
 
 7 Fiscal year for the Company being the year ending March 31, 2010,
 the ultimate tax liability will be determined on the basis of the
 results for the period April 1, 2009 to March 3 1, 2010.
 
 8 Prior years figures have been regrouped, recast and restated where
 necessary to conform to the current years classification.
 
 (2) Nature of provisions:
 
 (i) Provision for replacement guarantee
 
 The Company provides for the estimated liability on guarantees given on
 sale of its products based on past performance of such products. The
 provision represents the expected cost of replacement and free of
 charge services and it is expected that the expenditure will be
 incurred over the contractual guarantee period which usually ranges
 from 6 months to 24 months.
 
 (ii) Legal and regulatory
 
 The Company has made provision for taxes and duties relating to cases
 that are pending assessments before Adjudicating Authorities where
 possible outflow of resources may arise in future which would depend on
 the ultimate outcome on conclusion of the cases.
 
 (iii) Personnel related
 
 The Company has made provisions in respect of amounts payable to
 certain employees based on their retention and performance, which are
 payable over a three year and one year period respectively.
 
 (iv) Other risks
 
 This represents provisions created following the accounting concept of
 conservatism towards possible outflow of resources in respect of:
 
 a.  Claims other than those included in (i) and (ii) above; and against
 the Company amounting to Rs. 124;
 
 b.  Other obligations amounting to Rs. 129 arising through contractual
 terms or otherwise in respect of anticipated costs arising from the
 realignment of product portfolio within the Consumer Lifestyle business
 segment.
 
 * Refer Note 15 to Profit and Loss Account
 
 9 Contingent liabilities
 
 (a) Claims not acknowledged as debts by the Company - Rs.32 (31.12.2008
 - Rs.32).
 
 (b) In respect of disputed excise demands - Rs.162 (31.12.2008 -Rs.
 162), income tax demands - Rs.518 (31.12.2008 - Rs.509) and service tax
 demands Rs.328 (31.12.2008 - Rs. 16)
 
 (c) In respect of suppliers / customers demands and certain tenancy /
 customs / sales tax disputes for which the liability is not
 ascertainable.
 
 The Company does not expect any reimbursements in respect of the above
 contingent liabilities. It is not practicable to estimate the timing of
 cash outflows, if any, in respect of (a) and (b) above pending
 resolution of the legal proceedings.
 
 10 There are no Micro, Small and Medium Enterprises to whom the Company
 owes dues, which are outstanding for more than 45 days as at December
 31, 2009 and the information given in Schedule 12 Liabilities as
 required to be disclosed under the Micro, Small and Medium Enterprises
 Development Act, 2006 has been determined to the extent such parties
 have been identified on the basis of information available with the
 Company.
 
 11 Prior years figures have been regrouped, recast and restated where
 necessary to conform to the current years classification.