(Rs. in thousands)
 
 1.  CONTINGENT LIABILITIES IN RESPECT OF          Dec 2009     Dec 2010
 
 (a) Legal cases against the Company not 
 acknowledged as debts                              123,575       23,012
 
 (b)  Sales tax and Excise demands against 
 which the Company has filed appeals                138,897       65,627
 
 2.  ACCOUNTING OF DERIVATIVES
 
 Pursuant to the announcement by the Institute of Chartered Accountants
 of India in respect of Accounting for Derivatives in March 2008 and in
 view the principle of prudence as enunciated in Accounting Standard 1 -
 Disclosure of Accounting Policies, the entity has provided for losses
 in respect of all outstanding derivative contracts at the balance sheet
 date by marking them to market. The Company has recognised mark to
 market net losses of Rs. 199,136 thousand (Rs 99,519 thousand) relating
 to foreign exchange derivatives in the profit and loss account and
 included in Bank Charges and foreign exchange variation cost (net)
 under Note 18.
 
 3.  AREVA TRANSMISSION AND DISTRIBUTION BUSINESS SALE:
 
 On January 20, 2010 between ALSTOM Holdings and Schneider Electric
 Industries SAS (acquirers) entered into a share purchase agreement
 with AREVA SA, through ALSTOM Sextant 5 SAS, a special purpose vehicle,
 acquired the Global T&D Business of AREVA SA effective from June 7,
 2010. In terms of the Securities and Exchange Board of India
 (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, in
 India, the acquirers during the year made a public announcement on May
 28, 2010 to the shareholders of the Company and made an open offer to
 purchase up to 20% of the issued share capital of the Company. The
 offer opened on November 6,2010 and closed on November 25, 2010. On
 December 3,2010, the acquirers had informed the Company confirming the
 completion of the open offer formalities. The acquirers had acquired
 2,906,624 (1.22%) equity shares tendered by the aforesaid erstwhile
 shareholders. These shares were held in Trust by the Registrar to the
 Offer, though not formally transferred in the Companys records.
 Consequently on completion of formalities, the Promoters holding stands
 increased to 175,492,524 (73.40%) equity shares. In the above open
 offer, the shareholders were also informed about the intention of
 proposed transfer of the Distribution business to Schneider group. The
 broad outline for giving effect to as aforesaid is under examination
 and upon firming up, necessary steps will be taken.
 
 4. SUBSIDIARY COMPANIES
 
 Two wholly owned subsidiaries - Grid Equipments Limited and Energy Grid
 Automation Transformers and Switchgears India Limited were incorporated
 on December 29, 2010. As subscribers to the Memorandum of Association
 of these wholly owned subsidiaries, the Company has agreed to subscribe
 Rs. 1,000 thousands each in the equity share capital. A sum of Rs.103
 thousands incurred towards incorporation of these companies are shown
 as recoverable balances in these financial statements.  There were no
 transactions in these companies during the period.
 
 5.  PRIOR YEAR COMPARATIVES
 
 Prior years figures have been recast/regrouped wherever considered
 necessary for comparative purposes.