1.  Contracts remaining to be executed on capital account and not
 provided for, are estimated at Rs. 177.70 crores (P.Y Rs. 239.37
 crores).
 
 2.  (a) Contingent liability not provided for: 
 
                                                   Rs. in crores
 
 Particulars                         31st March 2011 31st March 2010
 
 In respect of Performance/ Delivery 
 Guarantees given by banks to the buyers      58.17           77.79
 
 Corporate guarantees to banks in respect 
 of facilities granted to Group             1066.95          993.81
 companies
 
 Other bank guarantees                        32.30           11.18
 
 Claims against the company not 
 acknowledged as debts                         0.79            0.34
 
 Claims in respect of indirect taxes.          2.58               -
 
 3.  In the opinion of the management, Current Assets, Loans and
 Advances have value in realisation in the ordinary course of business
 at least equal to the amount at which they are stated.
 
 4.  On the basis of the report of Chartered Engineers and Government
 approved Valuers, the Company had revalued the Freehold Land, Factory
 Building, Other Building and Dry Docks on 30th June, 1994 and again on
 30th June 2002 and consequently an amount of Rs. 10.90 crores and Rs.
 59.99 crores respectively being the differences between the amount of
 fair market value of the same and depreciated value as per books as on
 those dates, have been added to the value of Fixed Assets and
 corresponding credit shown as Revaluation Reserve.
 
 Consequent to the revaluation there is an additional depreciation of Rs.
 1.44 crores (Previous year Rs. 1.52 crores), which has been withdrawn
 from Revaluation Reserves and credited to Profit and Loss account.
 
 5.  The company has chosen to avail the option underAS-11 notification
 issued by Companies (Accounting Standard) Amendment Rules 2009 GSR225
 (E) dated 31.03.2009 issued by Ministry of Corporate Affairs.
 
 The company has exercised the option with respect to long term monetary
 liabilities viz Foreign currency term loan availed by it. The company
 has no other long term monetary Assets / Liabilities.
 
 Due to the exercise of aforesaid option, the impact on Profit & Loss
 Account for the year is (loss) Rs. 2.56 crores (P.Y. loss Rs. 17.65
 crores) which has been credited/capitalized to CWIP.
 
 6.  Exchange fluctuation included in the Profit and Loss account - loss
 Rs. 100.54 crores and gain of Rs.. 90.05 crores (P.Y. loss Rs. 10.60 &
 gain 2.25 crores) out of which loss (net) Rs. 6.31 crores is related to
 material included in consumption. (P Y. loss (net) Rs. 10.60 crores).
 Forward cover loss included in Profit and Loss account Rs. 2.88 crores.
 (P. Ygain Rs. 23.77 crores).
 
 7.  The company has availed exemption vide Notification No S.O 301 (E)
 dated 08th February, 2011 issued by the Ministry of Corporate Affairs
 exempting Export Oriented companies whose export is more than 20% of
 the total turnover from disclosure of paragraphs 3(i)(a) and 3(ii)(a)
 of Part-I I of Schedule VI of the Companies Act 1956.
 
 iv) Remittance of dividend in foreign currency:
 
 The company has not remitted any amount in foreign currencies on
 account of dividends during the year and does not have information as
 to the extent to which remittances, if any, in foreign currencies on
 account of dividends have been made by / on behalf of non resident
 shareholders. The particular of dividend declared and paid to non
 resident shareholders during the yearare as under
 
 8.  Disclosure in respect of Operating Leases (Assets taken on lease):
 
 (a) The company has taken commercial / residential premises under
 cancellable operating leases. The lease agreements are usually
 renewable by mutual consent on mutually agreeable terms.
 
 (b) The expenses in respect of operating leases are accounted in
 General, Administration & Selling Expenses under Schedule-16.
 
 9.  The disclosures required under Revised Accounting Standard 15
 ''Employee Benefits'' notified in the Companies (Accounting Standards)
 Rules 2006, are given below:
 
 Defined Contribution Plan
 
 Defined Benefit Plan
 
 The employees'' gratuity fund scheme managed by SBI Life Insurance is a
 defined benefit plan. The present value of obligation is determined
 based on actuarial valuation using the Projected Unit Credit Method,
 which recognises each period of service as giving rise to additional
 unit of employee benefit entitlement and measures each unit separately
 to build up the final obligation.  The obligation for leave encashment
 is recognized in same manner as gratuity.
 
 10.  Disclosure in accordance with ''AS -7 Accounting for Construction
 Contracts'' issued by the Institute of chartered Accountants of India:
 
 The Gross amount due to customers reflects the net amount for all
 contracts in progress where progress billing exceeds cost incurred plus
 recognised profits (less recognised losses).
 
 During the year, advances from customers to the extent of work done
 amounting to Rs. 3721.18 crores is adjusted against Work in Progress in
 Schedule 7. Advances received in excess of work done and advances
 pending commencement of work are disclosed in Current Liabilities under
 Advances from Customers in Schedule 11.
 
 During the year, Rs. 341.02 crores ( P. Y. 79.87 crores) pertaining to
 completed assets ready to be put to use has been capitalized along with
 proportionate expenditure. The capitalization of proportionate
 expenditure is based on technical evaluation of the project by an
 independent valuer.
 
 Out of total deletion to CWIP, Ships amounting to Rs. 72.58 crores is
 transferred from CWIP to inventory due to availability of
 customer against the same.
 
 11. The company primarily operates in one business segment only i.e.
 manufacturing which is the only reportable segment. There is no other
 segment which satisfies the threshold limit as per Accounting Standard
 -17, issued by Institute of Chartered Accountants of India.
 
 12. The Company has firm commitments in foreign exchange as regards
 both its payables and receivables. The company has applied the
 principle of Hedge Accounting contained in Accounting Standard 30 for
 its net firm commitment in receivable and payables in foreign exchange.
 In view of the same, Mark to Market difference as on 31st March 2011
 of Rs. 6.21 crore (P. Y 20.08 crore) on payables does not have any
 material impact on the financial statement, as the receivables are
 higher than the payables.
 
 13.  The figures for the previous year have been
 arranged/rearranged/regrouped wherever considered necessary.