1.  CONTINGENT LIABILITIES
 
 a) Rs 9618 Lacs being claims (30th June 2009 Rs. 8254 Lacs)
 approximately against the company not acknowledge as debts.
 
 b) the details of disputed dues as per clause 9(b) of Section 227(4A)
 of the companies Act, 1956 are as follows:
 
 Name of 
 Statute      Nature of dues    Amount   Forum where dispute is pending
                             (Rs.in Lacs)
 
 Central excise 
 & tariff 
 Act,1985     Excise duty         861    Assessing Authority
                                 1123    Appellate Authority
                                  372    High court
 
 Central Sales 
 tax Act ,
 1956         Sales tax          1573    Assessing Authority
 and Sales tax 
 Act of Various 
 States
 
                                  664    Appellate Authority
 
                                    5    High court
 
 Custom Act, 
 1961         Custom Duty           7    Custom commissioner
 
 Water 
 (prevention 
 and control 
 of pollution)    Charges           8    Honble high court 
                                         of Orissa
 
 Cess (Amendment) 
 Act 2003
 
                                    1    State pollution control 
                                         Board of India
 
 Income tax 
 Act,1961     income tax *       3147    Honble high court 
                                         Nagpur Bench
 
 Total                           7761
 
 * Appeals preferred by the department against appellate authoritys
 order
 
 c) the future obligation for the rentals under a Financial Lease
 Agreement entered into, by the company for certain assets taken on
 lease by another company amounts to Rs. 2.07 Lacs (30th June, 2009 Rs.
 6 Lacs).
 
 2.  Guarantees given by bankers on behalf of the company remaining
 outstanding and Bills Discounted with Banks remaining outstanding
 amount to Rs. 943.24 Lacs (30th June, 2009 Rs. 935.10 Lacs).
 
 3.  Estimated amount of contracts remaining to be executed on capital
 Account Rs. 504.98 Lacs (Net of Advances) (30th June, 2009 Rs. 831.19
 Lacs).
 
 4.  The company has operating leases for various premises and for other
 assets, which are renewable on a periodic basis and cancellable at its
 option. Rental expenses for operating leases charged to profit & Loss
 Account for the year are Rs. 43.17 Lacs (previous Year Rs. 38.49 Lacs).
 As of 30th June, 2010, the future minimum lease payments for
 non–cancellable operating leases are as below :–
 
 – Not later than one year from 30th June, 2010 Rs. 17.58 Lacs
 
 – Later than one year and not later than five years Nil
 
 5.  unit Ashti has imported certain plant and Machinery at concessional
 rate of custom duty under 5% export promotion capital Goods (epcG)
 scheme. the unit has been granted two licenses, accordingly the unit is
 obliged to export goods amounting uSD$ 9.17 million, which is
 equivalent to eight and half times the duty saved on import of
 machinery. the unit is required to meet this export obligation over a
 period of eight years starting 17th March 2005. the unit has achieved
 total export of uSD 8.68 million as on 30.06.10. As such the liability
 that may arise for non–fulfillment of export obligation is currently
 non–ascertainable.
 
 6.  Disclosures required under the Micro, Small and Medium enterprises
 Development Act,2006 (the Development Act)–delayed payments due as at
 the end of the year on account of principal – Rs.128.27 (previous Year
 Rs. NiL) and interest due thereon 3 Lacs (previous Year Rs. NiL).
 
 7.  MISCELLANEOUS EXPENDITURE – DEFERRED REVENUE EXPENDITURE
 
 Compensation paid under the Approved Voluntary Retirement Scheme for
 its employees have been treated as Deferred Revenue expenditure, which
 was being written off over a period of five years or up to 31st March
 2010, whichever is earlier.
 
 8.  Construction and installation in progress and Advances against
 capital Assets include expenses and interest related to ongoing
 projects at various units of the company.
 
 9.  The company has entered into a power purchase Agreement with
 Avantha power & infrastructure Limited and the rates of purchase of
 power and steam have been agreed periodically as per the terms of the
 agreement.
 
 10.  Accounts with certain Financial institutions, Banks and companies
 are subject to reconciliation; however these will not have any
 significant impact on the profit for the year and on the net worth of
 the company as on the Balance Sheet date.
 
 11.  Figures for the previous year have been rearranged and regrouped,
 wherever necessary to conform to current years classification.