Current Year    Previous Year
                                          Rupees           Rupees
 
 1.Estimated amount of contracts 
 remaining to be executed on 
 capital account and not provided 
 for                                     231,960        7,289,807
 
 2.Contingent liabilities, in 
 respect of
 
 a.Show cause notices received 
 from customs authorities 
 relating to imports made in 
 earlier                             242,015,325      242,733,026 
 years. The Company has
 filed replies to these notices 
 and does not expect any demand
 to materialize
 
 b.Disputed demands of custom 
 duty pending before the Customs, 
 Excise and Service Tax                2,414,221        2,414,221 
 Appellate Tribunal (CESTAT)
 
 c.Disputed penalty demands of 
 Custom Authorities with respect 
 to (b) above, pending before          2,412,221        2,412,221 
 the Customs, Excise and
 Service Tax Appellate Tribunal 
 (CESTAT)
 
 d.Disputed demand of excise duty 
 in connection with valuation of
 products manufactured by             38,715,672       38,715,672 
 the Company pending
 before CESTAT
 
 e.Disputed penalty demands of 
 Excise Authorities with regard 
 to (d) above, pending before         39,517,713       39,517,713 
 the CESTAT
 
 
 f.Custom duty paid under protest
 The raw material/trading material/
 software imported by the Company 
 are subjected to                      4,487,728        4,487,728
 different rates of customs duty 
 based on classification under
 respective Tariff Head. The
 Customs department has objected to 
 the classifications adopted by the
 Company for certain items and has 
 demanded additional duty for the 
 same. The Company has paid such 
 differential duty under protest, 
 which is included under
 Advances recoverable in cash or in 
 kind or for value to be received in
 Schedule 8, pending
 resolution of the dispute.
 
 g.SEBI had filed a criminal case, 
 in the Metropolitan Magistrate
 court, in June, 2006 under Section 
 77A(4) r/w Section 621 for alleged
 contravention of provisions of the 
 Companies Act, 1956 for failing to
 complete the process of buy back of 
 shares as provided under the said
 section. The Company had filed an 
 application in the Hon’ble High 
 Court of Bombay and the Hon’ble 
 High Court has passed Orders 
 staying the proceedings in the 
 Metropolitan Magistrate court.
 The stay is continuing. The Company 
 does not expect any liability on
 this account at this stage.
 
 3.  The Board of Directors of the Company at its meeting held on 31st
 March, 2011 approved the sale of the Structured cabling business
 comprising of manufacture, sale and marketing of structured cabling 
 products carried under the brand name “DIGILINK”, hereinafter referred 
 to as (Digilink Business), to Schneider Electric India Private 
 Limited (“ Schneider”). The Digilink Business together with its 
 respective assets and liabilities, shall be transferred to Schneider 
 on a ''slump sale'' basis as a going concern, for a cash consideration 
 of Rs. 5,030,000,000/- to be adjusted for any net working
 capital changes as on the closing date.
 
 In this connection, the Company has signed the Business Transfer
 Agreement dated 31st March, 2011 and has obtained the shareholder''s
 approval subsequent to the year-end.
 
 Subsequently, the Company has received the aforesaid amount on 13th
 May, 2011, the closing date, and has taken steps to complete the
 transaction with Schneider.
 
 Accordingly, the ''DIGILINK'' business is considered as a ''discontinued
 operation'' in terms of Accounting Standard 24 on ''Discontinued
 Operations'' (AS 24).
 
 The disclosures required under AS 24 are as under:
 
 4. Lease transactions 
 
 Operating leases
 The Company has taken premises /vehicles on cancellable operating lease
 basis. The tenure of the agreement ranges from 33/60 months. There are
 no renewal or purchase options and escalation clauses in these
 agreements.
 
 The lease rentals for the year charged to revenue are Rs. 1,334,624/-
 (previous year Rs. 1,345,178/-)
 
 5. Related party disclosures
 
 Names of related parties where control exists
 
 Digilink Middle East (FZE) (w.e.f. 07th April 2010)
 
 List of related parties with whom transactions have taken place during
 the year and nature of relationship
 
 
 Name of the related parties      Nature of relationship
 
 Digilink Middle East (FZE) 
 (w.e.f. 07th April 2010)         Subsidiary company
 
 Mr.Kamalaksha R. Naik            Key management person
 
 Mr. Jangoo Dalal 
 (previous year upto 
 31.05.2009)                      Key management person
 
 Mrs.Sudha K. Naik                Relative of key management person
 
 Mrs. Lakshana A. Sharma          Relative of key management person
 
 Ms. Arati K. Naik                Relative of key management person
 
 D-link India Limited 
 (formerly  known as 
 Smartlink                        Enterprise over which key 
                                  management person and his 
                                  relatives are
 
 Network Systems Limited) 
 (previous year upto 15-07-2009)  able to exercise significant 
                                  influence
 
 
 Notes
 
 1) There are no provisions for doubtful debts or amounts written off or
 written back for debts due from or due to related parties.
 
 2) Figures in brackets are those of the previous year.  
 
 6. Segment information
 
 (A) Segment information for primary reporting (by business segment)
 
 The Company has its operations in developing, manufacturing, marketing,
 distributing and servicing networking products. These networking
 products are sold to distributors, Original Equipment Manufacturers
 (OEM’s) and System Integrators (SI). The primary reporting segment for
 the Company, therefore, is the business segment, viz., networking
 products.
 
 (B) Segment information for secondary segment reporting (by
 geographical segments)
 
 The secondary reporting segment for the Company is the geographical
 segment based on location of customers, which is as follows:
 
 i) Domestic
 
 ii) Export
 
 Information about secondary segments
 
 7. Excise duty collected from customers against sales has been
 disclosed as a deduction from turnover . The excise duty related to the
 difference between the opening and closing stock of finished goods is
 disclosed separately in the profit and loss account as Excise Duty.
 
 8. The Company had instituted “Employee Stock Option Plan” (ESOP) for
 its employees in the year 2000. To administer the ESOP the Company had
 created a Trust viz. D-Link (India) Limited ESOP Trust (the Trust) in
 September 2000. The said Trust was allotted 6,50,000 Equity Shares of
 Rs 2/- each.  In terms of the said ESOP, the Trust has been granting
 options to the employees in the form of Equity Shares which vest at the
 rate of 25% on each successive anniversary of the grant date. The Trust
 has been renamed as Smartlink ESOP Trust. The accounting of ESOP''s
 granted by the Trust to the employees of the Company is done in
 accordance with the SEBI (ESOS and ESPS) Guidelines, 1999. These
 Guidelines were amended in July 2004 for all accounting periods
 commencing after 30th June 2003. The amendment required the Company to
 prepare its accounts as if the ESOS/ESPS scheme was administered by
 itself (rather than by the Trust). The Company has accordingly
 considered all the options granted by the Trust on or after 1st April
 2004. The difference between the Market price of the share (intrinsic
 value) and the exercise price of the option, on the date of grant, is
 being amortised over the vesting period. The annual amortization is
 included under “Payments to and Provisions for Employees” in
 Schedule-13 and the cumulative charge is disclosed in the Balance sheet
 under “Employee stock options outstanding”.
 
 9. Cash credit account with the bank was secured by hypothecation of
 movable assets, stock, stores, work-in-process, book debts both present
 and future.  The aforesaid charge has been released by the bank during
 the year.
 
 10. Previous year''s figures have been regrouped , wherever necessary,
 to conform to those of the current year.