1.  Contingent Liabilities not provided for:
 
                                         Current Year   Previous Year
                                            Rs. Lakhs       Rs. Lakhs
 
 a.  Bank Guarantees                           385.00          386.00
 
 b.  Letter of Credit                          556.58          378.93
 
 c.  Disputed Income Tax Liability             178.15               -
 
 d.  Disputed Sales Tax Liability               19.06           19.06
 
 2.  The company has set up an industrial undertaking at Yanam, State of
 Pondicherry under Section 80IB and Dehradun State of Uttarakhand under
 Section 80IC under backward states. The company has also registered
 with Director of Industries and Commerce. As per provisions of Section
 80 IB, the company is eligible for deduction at 100% profit earned for
 the unit for a period of 5 years and 30% of profits for the next 5
 years for both the units. Therefore, the provision for tax has been
 made after claiming the deduction under section 80IB & IC.
 
 3.  Cash Credit from State Bank of Hyderabad is secured by
 Hypothecation of raw materials, semi-finished, finished goods and
 sundry debtors of the company and guaranteed by directors of the
 company in their personal capacities.
 
 4. Short Term Working Capital Loans from Banks and Financial
 Institutions mentioned under Schedule - D are not charged with any
 assets of the company but these loans are secured by the personal
 guarantees of directors.
 
 5.  Particulars of employees required under section 217(2A) of the
 companies Act, 1956 and the rules framed there under is not applicable
 as none of the employees are in receipt of gross remuneration as per
 the details prescribed in these rules.
 
 6.  Paise have been rounded off to the nearest rupee. Previous year
 figures have been regrouped wherever if thought necessary in conformity
 with the Current year groupings.
 
 7.  There are no separate reportable segments (business and/or
 geographical) in accordance with the requirements of Accounting
 Standard 17 - ''Segment Reporting'', notified in the companies
 (Accounting Standards) Rules 2006.
 
 8.  Transactions with the Related Parties pursuant to Accounting
 Standard 18 : 
 
 i.  List of Related Parties
 
     Subsidiary Company            : Bhashwanth Power Projects                       
     Associate Companies/Firms       Pvt. Ltd.,
     (including Companies/firms 
     Controlled by key management 
     Personnel/relatives who are 
     sub- stantially interested)
 
     Key Management Personnel      : Mr. G. Rama Krishna Reddy,
                                     Chairman
 
                                     Mr. G. Rama Manohar Reddy, 
                                     Managing Director 
 
                                     Mrs. G. Amulya Reddy,
                                     Whole Time Director 
 
 ii. Transactions with Related 
     Parties
 
     Remuneration to Directors       Rs. 37,00,000/-
 
 
 9.  In compliance with the Accounting Standard  AS-22 Accounting for
 Taxes on Income issued by the Institute of Chartered Accountants of
 India, the company has recognized Rs.24,42,903/- towards deferred tax
 asset in the year 2010-11. The major components of deferred tax assets
 and liabilities arising on account of timing differences in
 depreciation.
 
 10.  Cash Flow statement has been prepared under indirect method as per
 the Accounting Standard - 3 Cash Flow Statements.
 
 11.  Sundry Debtors, Sundry Creditors, Advance for Supplies and
 Deposits are subject to confirmation with the respective parties /
 authorities.
 
 12.  Foreign Exchange Earnings & Outgo:
 
 - Foreign Exchange Earnings - Rs. NIL 
   (Previous year Rs.47.57 lakhs)
 
 - Foreign Exchange Outgo - Rs.699.73 lakhs 
   (Previous year - Rs. 2225.50 lakhs)