1) [A] CONTINGENT LIABILITIES NOT PROVIDED FOR :        
 
                                                         (Rs. in Lacs)
                                                  C. Year      P. Year
 
 I) Guarantees given by the company against 
 Term Loans given to                               895.00      1245.00 
 companies in which Directors are interested.
 
 Outstanding against this as at 31.03.2011         441.23       332.39
 
 II) i) For Excise -
 
 a) Related to a matter decided in favour 
 of the company, against which
 the Excise department has preferred an 
 appeal.Gross Rs. 18.03 lacs 
 (P.Y. Rs. 18.03 lacs) Net of Tax                   12.04        11.90
 
 b) Related to a matter which is disputed 
 by the company against which
 appeal is preferred.
 
 Gross Rs. 1.16 lacs (P.Y. Rs. 1.53 lacs) 
 Net of Tax                                          0.77         1.01
 
 ii) For Income Tax -
 
 a) which is disputed by the company and 
 against which company has                           6.94         4.49 
 preferred appeal, based on the demand 
 notices raised by Income Tax Dept. and 
 received by the company.
 
 b) Against which Income Tax department 
 has preferred appeal                              166.65       125.10
 
 c) In respect of erstwhile Vadilal 
 Financial Services Limited (VFSL)                   3.16         3.75 
 Income Tax Demand ( including interest) 
 for which the company has preferred 
 appeal.
 
 iii) For Sales Tax -
 
 Disputed by the company and against
 which company has preferred an appeal. 
 Gross Rs. 83.11 lacs ( P.Y. Rs. 83.86 lacs ) 
 Net of Tax                                         55.50        55.36
 
 iv) For other Matters -
 
 Gross Rs. 1.66 lacs (P.Y. Rs. 1.66 lacs) 
 Net of Tax                                          1.11         1.10
 
 v) In respect of other labour suits pending before     -            - 
 various courts, liability is unascertainable.  
 
 vi) Differential amount of custom/excise duty     707.42       660.16
 in respect of machinery imported under 
 EPCG scheme.  
 
 Note : a) Future cash outflows in respect of A (II) (i) to (v) above
 depends on ultimate settlement / conclusions with the relevant
 authorities.
 
 b) Future cash outflows in respect of A (II) (vi) above depends if
 company is unable to fulfill export obligations of Rs. 5986.67 Lacs
 (P.Y.Rs. 3960.95 Lacs) within next eight to twelve years.
 
 2) INVESTMENT IN PARTNERSHIP FIRMS
 
 ii) Amount of share of profit in partnership firm amounting to Rs.
 39.46 Lacs have been accounted on the basis of unaudited financial
 statements of the partnership firm.
 
 3) a) OPERATING LEASE:-
 
 i) The company has taken various residential, office and godown
 premises under operating lease or leave and licence agreements. These
 are generally not non-cancellable and range between 11 months and 36
 months under leave and licence or longer for other leases and are
 renewable by mutual consent on mutually agreeable terms. The company
 has given refundable interest free Security deposits under certain
 agreements.
 
 ii) Lease payments are recognised as expense in the Profit & Loss
 Statement on a straight line basis over the lease term under expense
 head Rent and Freight, Forwarding and Other distribution expenses
 in Schedule 20 Manufacturing and Other Expenses.
 
 4) The company has written down the inventories to net realisable value
 during the year by Rs. 38.91 Lacs (Previous year Rs. 18.83 Lacs).
 
 5) (i) Defined Contribution Plans:
 
 Amount of Rs. 51.21 Lacs is recognised as expense and included in
 Employee''s Expenses (Schedule 20) in the Profit and Loss Account.
 
 (ii) Defined Benefit Plans :
 
 (h) The company expects to fund Rs. 10.00 Lacs & Rs. 5.00 Lacs towards
 gratuity plan and Leave Encashment reaspectively and Rs. 20.00 Lacs
 towards provident fund plan during the year 2011-12.
 
 Notes :
 
 i) The company provides retirement benefits in the form of Provident
 Fund, Gratuity and Leave Encashment. Provident fund contributions made
 to Government Administrated Provident Fund are treated as defined
 contribution plan since the company has no further obligations beyond
 its monthly contributions. Gratuity is treated as defined benefit plan,
 and is administrated by making contributions to Group Gratuity Scheme
 of Life Insurance Corporation of India and SBI Life-Cap Assure Gratuity
 Scheme. Leave encashment is considered as defined benefit plans is
 administrated by making contributions to the Group Leave Encashment
 Scheme of Life Insurance Corporation of India and Sick leave is
 considered as defined benefit plan and it remains unfunded.
 
 6) RELATED PARTY DISCLOSURES : As per Accounting Standard 18.
 
 A) Name of related party and description of relationship where control
 exists.  Vadilal Industries (USA) Inc.  : Subsidiary Company (w.e.f. 11
                                           August 2009) 
 
 Vadilal Cold Storage                    : Partnership firm where share
                                           is more than 51 %
 
 B) Name of related party and description of the relationship with whom
 transactions taken place.
 
 1) Associates: Vadilal Chemicals Ltd. (Upto 1st September, 2009)
 
 2) Key Management Personnel : 
 
 i) Virendra R Gandhi
 
 ii) Rajesh R Gandhi 
 
 iii) Devanshu L Gandhi
 
 3) Enterprises owned or significantly influenced by key management
 personnel or their relatives : 
 
 i) Vadilal Enterprises Ltd.
 
 ii) Vadilal International Pvt. Ltd.  
 
 iii) Kalpit Reality & Services Ltd.  
 
 iv) Vadilal Happiness Parlour Ltd.  
 
 v) Veronica Constructions Pvt. Ltd.  
 
 vi) Padm Complex Pvt. Ltd.  
 
 vii) Majestic Farm House Ltd. 
 
 viii) Volute Constructions Pvt. Ltd.  
 
 ix) Valiant Constructions Pvt. Ltd.
 
 4) Relative of Key Management Personnel : 
 
 Mamta R Gandhi
 
 7) Disclosure as required by Accounting Standard (AS) 29 Provisions,
 Contingent Liabilities and Contingent Assets :
 
 b) Nature of provisions :
 
 In respect of others provisions, the nature thereof has not been
 disclosed on the grounds that it can prejudice the Interests of the
 company.
 
 c) The timing and the probability of the outflow with regards to these
 matters depend on the ultimate settlement / conclusion with the
 relevant authorities.
 
 8) EARNINGS PER SHARE :
 
 a) The amount used as the numerator in calculating basic and diluted
 earnings per share is the net profit for the year disclosed in the
 profit and loss account.
 
 b) The weighted average number of equity shares used as the denominator
 in calculating both basic and diluted earnings per share is 71,87,830.
 
 9) As per Accounting Standard (AS) 17, Segment Reporting, segment
 information is provided in the Notes to Consolidated Financial
 Statements.
 
 10) PARTICULARS OF DERIVATIVE INSTRUMENTS :
 
 a) Derivative contracts entered into by the company and outstanding as
 on 31st March, 2011:
 
 i) All derivative and financial instruments acquired by the company are
 for hedging.
 
 ii) Foreign currency exposure that are not hedged by derivative
 instruments as on 31st March, 2011- US $ 2888518 equal to Rs. 1292.59
 Lacs ( Previous year US $ 2257314 equal to Rs. 1013.99 Lacs) Euro 51130
 equal to Rs. 30.22 Lacs (Previous year Euro 511228 equal to Rs. 309.65
 Lacs)
 
 11) Based on the information available with the company, there are no
 suppliers who are registered under the Micro, Small and Medium
 Enterprises Development Act, 2006 as at March 31,2011. Hence, the
 disclosure relating to amounts unpaid as at the year end together with
 interest paid/payable under this Act have not been given. This is
 relied upon by the Auditors.
 
 11) Previous year figures have been restated wherever necessary to make
 them comparable with current year''s figures.