A.  NATURE OF OPERATIONS
 
 Whirlpool of India Limited is a leading manufacturer of home
 appliances. It is primarily engaged in manufacturing and trading of
 Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and
 small appliances and caters to both domestic and international markets.
 It also provides services in the area of product development,
 information technology, accounting and procurement services to
 Whirlpool Corporation, USA and other group companies.
 
 1.  CONTINGENT LIABILITIES
 
                                                  (Rs. in lacs)
 
 Particulars                                    As at        As at
                                           March 31, 2011  March 31, 2010
 
 (a) Claims against the Company not 
     acknowledged                            1,247.52        1,487.51 
     as debts
 These claims are in respect of various cases filed by
 the ex-employees and consumers. It has been
 estimated that the liability arising on the Company
 should the actions be successful is Rs. 1,247.52 lacs
 (Previous Year Rs. 1,487.51 lacs). The legal
 proceedings are going on and therefore it is not
 practicable to state the timing of any payment. The
 management is of the opinion that it is possible, but
 not probable, that the action will succeed and
 accordingly no provision for any liability has been made
 in these financial statements.
 
 (b)  Others:-
 
 - On account of pending appeals of Excise Duty &
 
 Service Tax                                3,586.46         1,479.83
 
 - On account of pending appeals of 
 Custom Duty                                  305.63           256.02
 
 - On account of pending appeals of Sales Tax
 assessments                                1,650.85         1,554.57
 
 These cases as mentioned in point (b) above for which the total
 estimated liability, should the actions be successful, is Rs. 5,542.94
 lacs (Previous year Rs. 3,290.42 lacs). The legal proceedings are going
 on and therefore it is not practicable to state the timing of any
 payment.
 
 In view of large number of cases, it is not practicable to disclose
 individual details of all the cases. On the basis of current status of
 individual case and as per legal advice obtained by the Company,
 wherever applicable, the Company is confident of winning the above
 cases and is of view that no provision is required in respect of these
 cases.
 
 (c) During the Income-tax assessments of various years, the Assessing
 Officers have made certain disallowances of Rs. 9,383.33 lacs (Previous
 Year Rs. 10,938.47 lacs), other than transfer pricing adjustments over
 the past few years. The Companys appeals against these orders are
 pending before the CIT Appeals/Appellate Authorities. The Income-tax
 department has also appealed against the Company before the Appellate
 Authorities for certain matters wherein the CIT Appeals have ordered in
 favour of the Company.
 
 The Income Tax Authorities (Transfer Pricing Officers) have reduced the
 loss by Rs. 9,734.49 lacs (Previous Year Rs. 9,734.49 lacs) for the
 Assessment year 2005-06, Rs. 7,967.93 lacs (Previous Year Rs. 7,967.93
 lacs) for the Assessment year 2004-05 and Rs. 3,628.14 lacs (Previous
 Year Rs. 1,699.09 lacs) for the Assessment year 2003-04 on account of
 transfer pricing adjustments. The Company has gone into appeal with
 Income Tax Appellate Tribunal against the aforesaid adjustments which
 have been adjusted against the brought forward losses from earlier
 years. Depending on the outcome of the afore-mentioned cases,
 assessments for the subsequent periods to March 31, 2011 could include
 demands/ settlements on the similar items, amounts whereof could not be
 ascertained.
 
 During the year the Income Tax Authorities have imposed penalty
 aggregating to Rs. 638.61 lacs in respect of assessment year 2003-04
 for furnishing inaccurate particulars of income.  The Company has
 appealed against the penalty order to CIT(A).
 
 The Company has recognized deferred tax assets considering that there
 would not be any adjustments to returned losses on account of the above
 cases. The management, based on expert opinion, believes that the
 Company has good chances of success.
 
 2.  During the year 2005-06, the Company had issued 1,523,42,500 10%
 Redeemable Non- Convertible Cumulative Preference Shares of Rs. 10
 each, fully paid up, to Whirlpool Canada Holding Co., a subsidiary of
 Whirlpool Corporation Inc., USA, the ultimate holding company.  These
 Preference Shares were redeemable at par at the earliest of the
 following events:
 
 (i) at the end of 20 years from the date of allotment i.e June 20, 2005
 for 108,850,000 shares and August 9, 2005 for 43,492,500 shares;
 
 (ii) at any time after the expiry of 30 days from the date on which the
 Company gives subscribers a notice of its intention to redeem the
 shares; or
 
 (iii) within 30 days from the date on which the subscriber gives the
 Company a notice of its intention to have the shares redeemed.
 
 During the current year the Company has redeemed 98,492,500 (Previous
 Year Nil) Preference Shares at par based on a notice received from the
 subscriber i.e. Whirlpool Canada Holding Co, giving its intention to
 have the shares redeemed. Such Preference Shares were redeemed by the
 Company in two tranches, 43,492,500 Preference Shares on July 22, 2010
 and 55,000,000 Preference Shares on November 2, 2010. The total amount
 of Preference Share Capital redeemed by the Company during the current
 year aggregates to Rs. 9,849.25 lacs (Previous Year Nil). Consequently
 thereto, an amount of Rs. 9,849.25 lacs has also been transferred to
 Capital Redemption Reserve Account.
 
 3.  Capital work contracted but still under execution (net of advances)
 is estimated at Rs. 1,108.82 lacs (Previous Year Rs. 1,064.67 lacs).
 
 4.  Segment Reporting
 
 Information pertaining to Secondary Segment
 
 Fixed Assets as per Geographical Locations
 
 The Company has common fixed assets, other assets and liabilities for
 domestic as well as overseas market. Hence, separate figures for assets
 and liabilities have not been furnished.
 
 5.  Related Party Transactions
 
 Following are the Related Parties and transactions made with them
 during the year:
 
 Key Management Personnel
 
 Mr. Arvind Uppal, Chairman & Managing
 Director Mr. Vikas Singhal (w.e.f July 25, 2008
 till March 31, 2010) Mr.Syed Shazad Akhtar
 (w.e.f May 17, 2010)
 
 Parties having direct or indirect
 control over the Company
 
 Whirlpool Corporation Inc., USA (Holding
 Company), Whirlpool Mauritius Limited
 
 Group Companies / Enterprise
 where common control exists and
 with whom transactions have taken
 place during the year.
 
 Maytag Sales Inc., Whirlpool (China) Investment
 Co. Ltd., Whirlpool Greater China Inc., Whirlpool
 Southeast Asia Pte, Whirlpool Europe S.r.l.,
 Whirlpool (Thailand) Limited, Whirlpool India
 Holdings Limited, Whirlpool Slovakia Spol s.r.o.,
 Whirlpool Home Appliance (Shanghai) Co., Ltd.,
 Whirlpool S.A., Whirlpool (Hong Kong) Limited,
 Whirlpool Colombia S.A., Whirlpool (Australia)
 Pty. Limited, WFC de Mexico S. de R.L. de C.V.,
 Whirlpool Maroc S. àr.l. Whirlpool Argentina S.A,
 Whirlpool South Africa (Pty) Limited, Guangdong
 Whirlpool Electrical Appliances Co. Ltd.,
 Whirlpool Microwave Products Development
 Limited, Beijing Embraco Snowflake
 Compressor Company Ltd, Whirlpool France
 S.A.S., Whirlpool Sweden A.B., Whirlpool
 Canada Holding Co., Whirlpool Polska S.A.,
 Bauknecht Hausgeräte GmbH, Whirlpool d.o.o.
 Beograd, Empressa Brasileira,Comercial Acros
 Whirlpool, S.A. de C.V., Whirlpool Product
 Development (Shenzhen) Co. Ltd., Whirlpool
 Asia Pvt Ltd., Whirlpool SSC Ltd. and Whirlpool
 Peru S.R.L.
 
 6.  Income Tax
 
 The Company has recognized Rs. 5,029.68 lacs as on March 31, 2011 as
 Minimum Alternate Tax (MAT) credit entitlement (Previous Year Rs.
 4,177.75 lacs), which represents that portion of the MAT Liability, the
 credit of which would be available based on the provisions of Section
 115 JAA of the Income Tax Act, 1961. The Management based on the future
 profitability projections and also profit earned during the year is
 confident that there would be sufficient taxable profit in future which
 will enable the Company to utilize the above MAT credit entitlement.
 
 7.  Share Based Compensation
 
 Disclosures in accordance with the Guidance Note on Accounting for
 Employee Share-based Payments issued by Institute of Chartered
 Accountants of India
 
 The Company does not provide any equity-based compensation to its
 employees. However, the parent company, Whirlpool Corporation, USA has
 provided various share-based payment schemes to employees.
 
 A.  Details of these plans are given below:
 
 i) Employee Stock Options
 
 A stock option gives an employee, the right to purchase shares of
 Whirlpool at a fixed price for a specific period of time. The grant
 price (or strike price) is fixed at the closing price of Whirlpool
 common stock on the date of grant. Stock options expire in ten years
 from the date they are granted and vests in equal annual installments
 over service periods.
 
 ii) Performance Cash Units
 
 A performance cash unit is a unit valued at  (1 performance cash unit
 = ), which employee receive at the end of a specified vesting period.
 Performance cash units provide cash value at delivery. Performance cash
 units always have value and are not tied to the price of Whirlpool
 stock.
 
 8. Gratuity and other post-employment benefit plans
 
 Gratuity (being administered by a Trust) is computed as 15 days salary,
 for every completed year of service or part thereof in excess of 6
 months and is payable on retirement/termination/ resignation. The
 benefit vests on the employee completing 5 years of service. The
 Gratuity plan for the Company is a defined benefit scheme where annual
 contributions as demanded by the insurer are deposited, to a Gratuity
 Trust Fund established to provide gratuity benefits.  The Trust has
 taken an Insurance policy, whereby these contributions are transferred
 to the insurer. The Company makes provision of such gratuity asset/
 liability in the books of account on the basis of actuarial valuation
 carried out by an independent actuary.
 
 The Superannuation (pension) plan for the Company is a defined
 contribution scheme where monthly contribution @ 15% of basic pay for
 certain employee at manager and above level (at the option of employee)
 is paid to a Superannuation Trust Fund established to provide pension
 benefits. The Trust Fund has taken an Insurance policy, whereby these
 contributions are transferred to the insurer.
 
 The Provident Fund is a defined contribution scheme whereby the Company
 deposits an amount determined as a fixed percentage of basic pay to the
 Statutory Provident Fund.  The benefit vests upon commencement of
 employment.
 
 The Company has also agreed to provide certain additional retirement
 benefits to the employees of the Faridabad Refrigeration Operations
 where Rs.20,000 is paid to employee on his retirement. Additional
 retirement benefit is unfunded defined benefit scheme. The Company
 makes provision of such liability on the basis of actuarial valuation
 carried out by an independent actuary.
 
 The following tables summarise the components of net benefit expense
 recognized in the profit and loss account and the funded status and
 amounts recognized in the balance sheet for the respective plans.
 
 9. Excise duty on sales amounting to Rs. 19,632.41 lacs (Previous Year
 Rs. 13,620.46 lacs) has been reduced from sales in Profit and Loss
 account and excise duty on increase in stock amounting to Rs. 948.26
 lacs (Previous Year Rs. 638.01 lacs) has been considered as expense in
 Schedule Q of the financial statements.
 
 10.  Previous year figures have been regrouped/ rearranged wherever
 considered necessary.