I Contingent Liabilities
 
 Claims against the Company not acknowledged as debts Rs. 3907.77 Lakhs
 (2010 - Rs. 267.19 Lakhs).  These comprise -
 
 a.  Tax demands disputed by the Company relating to
 disallowances/additions of fiscal benefits, pending at various stages
 of appeal, aggregating to Rs. 3894.40 Lakhs (2010 - Rs. 149.00 Lakhs).
 
 b.  Land disputes representing claims towards land grabbing cases
 pending before Honble Special Court aggregating to Rs. Nil (2010 - Rs.
 103.16 Lakhs).
 
 c.  Other matters relating to labour cases etc. aggregating to Rs.
 13.37 Lakhs (2010 - Rs. 15.03 Lakhs).
 
 II Future lease obligations
 
 The Company has entered into various operating lease agreements and the
 amounts paid under such agreements have been charged to revenue as Rent
 under Schedule 17. All these agreements are cancellable in nature.
 
 III Disclosures regarding Derivative Instruments
 
 The Company uses forward exchange contracts to hedge against its
 foreign currency exposures relating to the underlying transactions and
 firm commitments. The use of these foreign exchange forward contracts
 reduces the risk or cost to the Company and the Company does not use
 the foreign exchange forward contracts for trading or speculation
 purposes.
 
 IV Amalgamation of VST Distribution, Storage & Leasing Company Private
 Limited (DSL) with the Company
 
 Pursuant to the scheme of amalgamation of erstwhile wholly owned
 subsidiary DSL with the Company, as sanctioned by the Honble High
 Court of Andhra Pradesh on 16th March, 2011, the assets and liabilities
 of the erstwhile DSL were transferred to and vested in the Company,
 pending mutation, with effect from 1st April, 2010. The scheme has
 accordingly been given effect to in these accounts.
 
 The amalgamation has been accounted for under the pooling of interest
 method prescribed by the Accounting Standard on Amalgamation (AS-14).
 
 The assets and liabilities and other reserves of the erstwhile DSL as
 at 1st April, 2010 have been taken over at their book values.
 
 Consequently, the investment of the Company in DSL and the Equity Share
 Capital of DSL stands cancelled.
 
 In veiw of the aforesaid amalgamation with effect from 1st April, 2010,
 the figures for the current year are not comparable to those of the
 previous year.
 
 V Micro and small scale business entities
 
 There are no micro and small enterprises, to whom the Company owes
 dues, which are outstanding as at 31st March, 2011.  This information
 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.
 
 VI Employee Benefits
 
 a.  The Employee Benefit Schemes are as under:
 
 i.  Provident Fund
 
 Eligible employees of the Company receive benefits under the Provident
 Fund which are defined contribution/benefit plans wherein both the
 employee and the Company make monthly contributions equal to a
 specified percentage of the covered employees salary. These
 contributions are made to the Funds administered and managed by the
 Government of India/Companys own Trust. The Companys monthly
 contributions are charged to revenue in the period they are incurred.
 
 ii.  Gratuity
 
 In accordance with the Payment of Gratuity Act, 1972 of India, the
 Company provides for gratuity, a defined retirement benefit plan (the
 Gratuity Plan) covering eligible employees. Liabilities with regard
 to such Gratuity Plan are determined by actuarial valuation and are
 charged to revenue in the period determined. The Gratuity Plan is a
 funded plan administered by Companys own Trust which has subscribed to
 Group Gratuity Scheme of Life Insurance Corporation of India.
 
 iii.  Pension Fund
 
 The Company has a defined contribution pension scheme to provide
 pension to the eligible employees. The Company makes monthly
 contributions equal to a specified percentage of the covered employees
 salary. These contributions are administered by the Companys own Trust
 which has subscribed to Group Pension Scheme of Life Insurance
 Corporation of India. The Companys contributions of Rs. 103.66 Lakhs
 (2010 - Rs. 100.64 Lakhs) are charged to revenue in the period they are
 incurred.
 
 In addition to the above, the Company has a funded defined benefit
 pension scheme for its employees in the workmen category. Liabilities
 with regard to such defined benefit plan are determined by actuarial
 valuation and are charged to revenue in the period determined. The plan
 is administered by the Companys own Trust which has subscribed to
 Group Pension Scheme of Life Insurance Corporation of India.
 
 iv.  Leave Encashment
 
 The accrual for unutilised leave is determined for the entire available
 leave balance standing to the credit of the employees at period-end.
 The value of such leave balance eligible for carry forward, is
 determined by actuarial valuation and charged to revenue in the period
 determined. The scheme is fully funded by way of subscription to the
 Leave Encashment Scheme of Life Insurance Corporation of India.
 
 (I) Directors Remuneration
 
 (II) Exceptional items represents expense incurred under Voluntary
 Retirement Scheme for employees for the year ended 31st March, 2010 -
 Rs. 1241 Lakhs.
 
 (V) Segment Reporting
 
 The Companys business activity primarily falls within a single primary
 business segment viz. Tobacco and related products and hence no
 business segment information is provided.
 
 The entire activity pertaining to sales outside India is carried out
 from India, hence all segment assets are considered entirely to be in
 India.
 
 20.  Additional Information pursuant to the provisions of Paragraphs 3,
 4C and 4D of Part II of Schedule VI of the Companies Act, 1956
 
 a.  CLASS OF GOODS, CAPACITY AND PRODUCTION
 
 * The figure of Registered/Licenced Capacity is as re-endorsed on the
 Certificate of Registration as on 30th September, 1985 and is exclusive
 of an additional 25 per cent of the approved Registered/Licenced
 Capacity available to the Company under the Central Governments
 Liberalised Industrial Policy.