1.  Contingent Liabilities not provided for in respect of-.
 
 a) Claims against the company not acknowledged as debts:Rs. 149.72 Lacs
 (Previous Year:Rs. 369.57 Lacs).
 
 b) Disputed sales tax/Excise demands under appeal Rs. 76.30 Lacs
 (Previous Year: Rs. 86.78 Lacs).
 
 c) Corporate Guarantees given to banks and financial institutions for
 credit facilities/ performance guarantees extended by them to Batliboi
 Environmental Engineering Limited (BEEL), a related party: Rs.2690.00
 Lacs (Previous year: Rs. 2690.00 Lacs). Balance outstanding as on
 31.03.2011:Rs. 2360.26 Lacs (Previous Year: Rs. 2082.05 Lacs).
 
 d) Guarantees given on behalf of the Company by its bankers and
 outstanding Rs. 1318.05 Lacs (Previous year: Rs. 1182.26 Lacs). Out of the
 above, Guarantees of Rs. 224.64 Lacs (Previous year Rs. 100.51 Lacs) given
 by Company''s bankers and outstanding in respect of contracts of
 Batliboi Environmental Engineering Limited (BEEL), a related party.
 
 e) In respect of guarantees given by the company to the bankers of
 Batliboi Environmental Engineering Limited (BEEL), a related party,
 BEEL has given counter guarantees on behalf of the Company and extended
 charge on its current assets to secure the financial assistance availed
 by the Company from banks/financial institutions [Refer note II-
 4-(a)(ii)].
 
 f) Company has given Corporate Guarantee to others on behalf of its
 step down subsidiary Quickmill Inc amounting to CAD 0.74 Million
 equivalent to Rs. 339.87 Lacs (Previous year CAD 0.74 Million equivalent
 to Rs. 326.23 Lacs).
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account not provided for: Rs. 135.00 Lacs (Previous Year: Rs. 27.24 Lacs).
 
 3.  Borrowings and Security:
 
 a.  Security for Bank Borrowings:
 
 i. Working Capital Borrowings from Bank of Baroda led consortium banks
 on cash credit/overdraft/short term loan and non-fund based facilities
 are secured by way of first pari passu charge by hypothecation of stock
 of raw materials, goods in process, finished goods, stores and spares,
 books debts, outstanding monies, receivables, claims etc. pertaining to
 the manufacturing division at Udhana and the marketing branches
 situated all over India, both present and future; besides Second pari
 passu charge by way of registered mortgage on the immovable property of
 the company together with plant and machinery attached to the earth or
 permanently fastened to anything attached to the earth situated at
 free-hold land at Udhana, Gujarat. Working capital limits of
 amalgamated SPM division (erstwhile Batliboi SPM Pvt Ltd) sanctioned
 by Canara Bank are secured by hypothecation of Book Debts and
 Inventories of SPM Division. Canara Bank also has first charge on land
 and building of SPM Division situated at Bangalore.
 
 ii. A specific guarantee facility of Rs. 288 Lacs (Previous year Rs. 288
 Lacs) of BEEL from a bank, is secured by first pari passu charge by way
 of an equitable mortgage of the immoveable properties of the company
 situated at leasehold land at Deonar, Mumbai.
 
 b.  Rupee Term Loans from a Co-operative Scheduled Bank is secured by
 first charge on the fixed assets financed by these term loans and
 Second Charge on the Company''s immovable and movable property at
 Udhana, Gujarat. Working capital lender banks have the second pari
 passu charge on the said fixed assets.
 
 c.  Rupee Term Loan from a bank is secured by first pari passu charge
 on the entire fixed assets of the Company situated at Udhna, Gujarat
 along with other term lenders.
 
 d.  Foreign Currency Term Loans and other Rupee Term Loan are secured
 by first pari passu charge on the entire fixed assets of the Company
 situated at Udhna, Gujarat along with other term lenders.
 
 4.  a.  Balances of Debtors & Creditors are as per books of account.
 Letters have been sent to selected Debtors & Creditors seeking
 confirmation of balances and replies are awaited. Adjustments, if
 necessary, will be made on receipt of such
 confirmations/reconciliation.
 
 b. In the opinion of the Board of Directors, Current Assets, Loans and
 Advances have a realizable value in ordinary course of the business at
 least equal to the amounts at which they are stated in the Balance
 Sheet.
 
 5.  Pursuant to Section 40A (11) of the Income Tax Act, 1961, the
 company has during the year claimed back the unutilized amounts that
 were lying with the Welfare Trusts and the company has received Rs.
 427.43 lacs.
 
 6.  By virtue of acquisition proceeding, Surat Municipal Corporation
 (SMC), acquired land admeasuring 2541.84 Sq. meter at Udhna in 1995-96,
 without paying any compensation. SMC had also acquired land admeasuring
 3360 Sq. meter at Udhna in the FY 2007-08 against which SMC paid
 compensation of Rs. 3.16 Lacs after adjusting betterment charges of Rs.
 15.99 Lacs and TDS of Rs. 2.79 Lacs. The Company has preferred an
 application against the said compensation before the Principal Judge
 Sr. Division Court Surat, claiming compensation at the prevailing
 market price. Pending the final compensation, the amount received as
 above has been disclosed under the head Current Liabilities.
 
 B.  Defined Benefit Plans/Compensated Absence: 
 General description of Defined Benefit Plan
 
 Gratuity:
 
 The company operates gratuity plan wherein every employee is entitled
 to the benefit equivalent to fifteen days/one month salary last drawn
 for each completed year of service depending on the length of service.
 The same is payable on termination of service or retirement, whichever
 is earlier. The benefit vests after five years of continuous service.
 
 (ii) Provident fund:
 
 The Guidance issued by the Accounting Standard Board (ASB) on
 implementing AS-15 Employee Benefits (Revised 2005). states that
 provident funds set-up by employers, which require interest shortfall
 to be met by the employer, needs to be treated as defined benefit plan.
 
 Pending the issuance of the guidance note from the Actuarial Society of
 India, the company''s actuary has expressed his inability to reliably
 measure provident fund liability. Accordingly, the company is unable to
 exhibit the related disclosures.
 
 The Provident Fund Trust has surplus to meet out the shortfall on
 account of increase in the rate of interest on Provident Fund Balances
 for
 
 thauaar9nm.11
 
 b) In view of losses (after adjusting the losses of earlier years
 against the profits of the current year) no commission is payable to
 directors. Hence computation of net profit under Section 349 of the
 Companies Act. 1956. has not been given.
 
 7.  (a) Foreign currency long term loan includes:
 
 (i) Canadian Dollar (CAD) 1701000 i.e. Rs. 782.29 Lacs against which the
 company has not taken any forward cover as at balance sheet date.
 
 (ii) EURO 316575 i.e. Rs. 200.65 Lacs against which the company has not
 taken any forward cover as at balance sheet date. The company has
 natural hedge against commission receivable.
 
 (iii) USD 288384 i.e. Rs. 128.60 Lacs against which the company has no
 forward cover or natural hedge.
 
 (iv) The company has no exposure by way of derivative contracts.
 
 (b) Exchange Gains/Loss credited/charged to Profit and Loss Account:
 Exchange Gain Rs. 95.68 Lacs (P.Y. Exchange Loss Rs. 166.59 Lacs).
 
 8. It is the view of the company that the provisions of Items 3(ii)
 (d) of Part II of Schedule VI of the Companies Act, 1956 do not require
 disclosure of the quantities and value wise information of Opening and
 Closing stock and purchases in respect of goods traded in by the
 Company.
 
 9.  Segment Reporting:
 
 The company has considered business segments as the primary segments
 for disclosure.
 
 Segments have been identified in line with the Accounting Standards on
 Segment Reporting (AS-17), taking into account the nature of business,
 products and services, the Company''s organization structure as well as
 the differential risks and returns of these segments.  Segments
 Revenue, Results, Assets and Liabilities include the respective amounts
 identifiable to each of the segments. Those not - identifiable to the
 individual segments are included under unallocated.
 
 The company has classified its business into four major segments:
 
 a) Machine Tool Business Group, which handles manufacturing and
 marketing (including trading and agency business) of machine tool and
 components e.g. CNC and GPM machines, machine castings, machine
 carcasses and cranes etc.
 
 b) Textile Engineering Group, which deals in manufacturing and
 marketing of textile air-engineering systems range i.e.
 Humidification,.  Waste Recovery and Auto Control Systems, besides
 marketing (including trading and agency business) of textile machinery
 e.g.  circular knitting, spinning, and flat-knitting machines etc.
 
 c) Air-conditioning and Refrigeration division, which covers
 manufacturing, marketing, commissioning and servicing of packaged
 air-conditioners and chillers etc.
 
 d) Others, which covers remaining business i.e., agro-industrial
 products (e.g. pumps/motors), air and water treatment jobs etc.
 
 ii) Secondary Segment Reporting
 
 The Company caters mainly to the needs of the domestic market. The
 export turnover is not significant in the context of the total
 turnover. As such there are no reportable geographical segments.
 
 10.  Related Party Disclosures:
 
 Related party disclosures as required under Accounting Standard 18
 (AS-18) on Related Party Disclosures are given below: A)
 Relationships:
 
 i) Subsidiary companies: .
 
 a) Queen Projects (Mauritius) Ltd.-Mauritius
 
 b) Vanderama Holdings Ltd.-Cyprus
 
 c) Pilatus View Holdings AG-Switzerland
 
 d) Quickmill Inc.-Canada
 
 e) Aesa Air Engineering SA-France
 
 f) Aesa Air Engineering SPA-ltaly
 
 g) Aesa Air Engineering PTE Ltd-Singapore h) Aesa Air Engineering
 Ltd-Hong Kong
 
 i) Aesa Air Engineering Ltd-China -
 
 j) Aesa Air Engineering Pvt Ltd-lndia
 
 k) 760 Rye Street - Canada ii) Key Management Personnel:
 
 Mr. Nirmal Bhogilal, Chairman & Managing Director iii) Relatives of Key
 Management Personnel:
 
 a) Mr. Pratap Bhogilal, Chairman Emeritus
 
 b) Mr. Kabir Bhogilal, General Manager-Business Development
 
 c) Mrs. Sheela Bhogilal
 
 iv) Entities over which key management personnel are able to exercise
 significant influence:
 
 a) Batliboi Environmental Engineering Ltd.  .
 
 b) Batliboi International Limited
 
 c) Batliboi Impex Ltd.  .
 
 d) Batliboi Enexco Pvt. Ltd.
 
 e) Sustime Pharma Ltd.
 
 f) Spartan Electricals
 
 v) Entities in which management personnel are trustees:
 
 a) Bhogilal Leherchand Foundation
 
 b) Leherchand Uttamchand Trust Fund
 
 11. The Company has investments in Batliboi Environmental Engineering
 Ltd, (BEEL) of Rs. 191.21 Lacs. BEEL has accumulated losses which have
 significantly eroded their net worth. The company has also investment
 in its subsidiary Aesa Air Engineering SA- France whose accumulated
 losses are greater than the net worth.
 
 In the opinion of the Management, having regard to the long term
 interest of the company in the aforesaid companies, there is no
 diminution other than temporary, in the value of the Investments.
 
 12.  The figures in respect of the previous financial year have been
 reclassified and regrouped wherever necessary.