A.l. BASIS OF ACCOUNTING
 
 The Financial statements are prepared and presented under the
 historical cost convention, in accordance with Generally Accepted
 Accounting Principles in India (GAAP), on accrual basis of accounting
 except as stated herein. GAAP comprises of mandatory Accounting
 Standards (AS) covered by the Companies (Accounting Standards) Rules
 2006 issued by the Central Government, to the extent applicable, the
 provisions of Companies Act, 1956 and these have been consistently
 applied.
 
 A.2. USE OF ESTIMATES
 
 The preparation of the Financial Statements in conformity with GAAP,
 requires that the Management to make estimates and assumptions that
 affect the reported amount of Assets and Liabilities, disclosure of
 contingent liability as at the date of financial statements and the
 reported amount of revenue and expenses during the reporting period.
 Although such estimates are made on a reasonable and prudent basis
 taking into account all available information, actual results could
 differ from these estimates and such differences are recognised in the
 period in which the results are ascertained.
 
 B.  DISCLOSURE UNDER MANDATORY ACCOUNTING STANDARDS
 
 1.  Accounting Standard 5 (Net Profit or Loss for the period. Prior
 period items and Changes in Accounting Policies)
 
 (a) Company has commenced recognizing Expenditure on Software which is
 not an integral part of hardware, as Intangible Asset as against the
 previous practice of charging such expenditure to revenue. Due to the
 change in the Accounting Policy, the profit for the year is increased
 by Rs. 481.32 lakhs.
 
 3.  Accounting Standard 11 (Foreign Exchange Fluctuations)
 
 Effect of Foreign Currency Fluctuation included in the Profit & Loss
 account for the year is Rs. 295.22 lakhs (Cr) [Previous Year Rs.
 1529.77 lakhs (Cr)]
 
 4.  Accounting Standard 15 (Employee Benefits)
 
 (a) Leave Salary
 
 This is an unfunded defined benefit plan categorized under other long
 term employee benefits in terms of Revised Accounting Standard 15. The
 defined benefit obligation for compensated absence has been actuarially
 valued and liability provided accordingly.
 
 (b) Gratuity
 
 The employees'' gratuity fund scheme managed by a Trust is a defined
 benefit plan. The present value of obligation is determined based on
 actuarial valuation using the Projected Unit Credit Method.
 
 5.  Accounting Standard 16 (Borrowing Cost)
 
 The amount of interest capitalized during the year is Rs.95.66 Lakhs (
 Previous Year Rs. NIL). Out of this a sum of Rs. 6.56 Lakhs relates to
 previous years.
 
 (b) Segmental Capital Employed:
 
 Fixed assets used in Company''s business or liabilities have not been
 identified to any of the reportable segments, as the fixed assets are
 used interchangeably between segments. The Company believes that it is
 currently not practicable to provide segment disclosures relating to
 total assets and liabilities since a meaningful segregation of the
 available data is onerous.
 
 (c) Secondary Reporting:
 
 Since, more than 90% of total sales is within India, geographical
 reporting is considered not applicable.
 
 8.  Accounting Standard 19 (Leases)
 
 i) Office premises taken on lease
 
 The Company''s significant leasing arrangements are in respect of
 operating leases in respect of some of its office premises. These lease
 arrangements, which are cancellable, are generally renewable by mutual
 consent. The aggregate lease rentals paid are disclosed under rent in
 Schedule 20.
 
 B.  Intangible Assets:
 
 Intangible Assets included in Schedule 4 (b) like Expenditure on
 Software & Technical Knowhow Fee are amortised over a period not
 exceeding ten years based on technical assessment.
 
 12.  Accounting Standard 27 (Financial Reporting of Interests in Joint
 Ventures)
 
 The Joint Venture Company, BEML Midwest Ltd., has not prepared its
 Financial Statements as on 31st March, 2011. Hence, disclosure
 requirements under AS-27 could not be complied with.
 
 13.  Accounting Standard 28 (Impairment of assets)
 
 No provision was considered necessary for impairment of assets as the
 realizable value of assets technically assessed is more than the
 carrying cost of these assets.
 
 (b) Counter guarantees given to banks for guarantees issued on behalf
 of the Company is Rs. 65465.44 lakhs. (Previous Year Rs. 53780.70
 lakhs)
 
 (c) Claims against the Company not acknowledged as debts (net of
 provisions, to the extent ascertainable):
 
 i.  Disputed statutory demands (Customs Duty, Central Excise, Service
 Tax, Sales Tax/VAT) Rs. 6592.06 lakhs (Previous Year Rs. 7252.05 lakhs)
 
 ii.  Other claims- legal cases etc. Rs. 3433.01 lakhs (Previous Year
 Rs. 2237.06 lakhs)
 
 (d) Corporate Guarantee issued to bankers on behalf of BEML Midwest Ltd
 (Joint Venture Company) Rs. 1912.50 lakhs (Previous Year Rs. 1912.50
 lakhs)
 
 (e) Corporate Guarantee issued to bankers on behalf of Vignyan
 Industries Limited (Subsidiary Company) Rs. 750.00 lakhs (Previous Year
 Rs .750.00 lakhs).
 
 (f) Contingent liability on availment of factoring receivables facility
 - Rs. 13370.43 lakhs (Previous Year Rs. NIL)
 
 C.  DISCLOSURE UNDER STATUTE
 
 2.  The information under MSMED Act, has been disclosed only to the
 extent such vendors have been identified by the Company based on the
 certificates produced by them.
 
 3.  Depreciation rate adopted by the Company in respect of following
 assets is significantly higher than the statutory minimum rates
 prescribed under the Companies Act, 1956.
 
 4. The Company has been exempted by the Ministry of Corporate Affairs
 vide letter dt.28.01.2011 from disclosure requirements in compliance of
 paras 3(i)(a), 3(h) (a) to (d), 4-C and 4-D of Part II, Schedule VI to
 the Companies Act, 1956 relating to sales in respect of each class of
 goods, quantitative details licensed capacity, installed capacity,
 actual production, value of imports on CIF basis etc.
 
 D.  GENERAL
 
 1.  SALES
 
 (i) Sales include revenue recognized in terms of Accounting Policy
 No.5(i) representing Sales covered by Goods Carrier Notes amounting to
 Rs. NIL lakhs (Previous Year. Rs. 12260.92 lakhs) and Custodian
 Certificate cases, as per customers'' request, amounting to Rs. 6790.78
 lakhs (Previous Year Rs. 17560.76 lakhs) for which necessary excise
 duty has been provided, where the equipments were lying in the Company
 premises as at 31 ''March, 2011.
 
 (ii) Sales include revenue recognized in terms of Accounting Policy
 No.5(i) amounting to Rs. NIL lakhs (Previous Year Rs. 8660.16 lakhs)
 representing sales on FOR Destination basis in respect of which the
 goods have been handed over to transporter on or before 31st March,
 2011 and are in transit as on 31stMarch 2011.
 
 (iii) Sales include Rs. 82090.41 lakhs (Previous Year Rs. 58302.41
 lakhs) representing revenue recognized under Accounting Policy No 5(ix)
 in respect of Metro coaches supplied to Metro customers in terms of
 Supplementary Consortium Agreement entered into between the Members of
 the Consortium authorizing the Company to make sale of whole of the
 scope under the main contract awarded to the Consortium and on which
 the terminal taxes and duties are being discharged by the Company under
 the applicable laws.
 
 (iv) Sales include Rs. 2814.60 lakhs (Previous Year Rs. 3534.66 lakhs)
 recognised as additional provisional price in terms of Accounting
 Policy No. 5(iv) based on the price recommended for Rail coaches by the
 Chief Advisor (Cost), Ministry of Finance. The recommended price is
 under consideration by the Railway Board. The adjustment, if any, on
 flnalisation of price will be accounted in the year of finalisation.
 
 (v) As per the terms of the sale order from Ministry of Defence for
 specialized vehicles, date of offer for inspection of the vehicles to
 Inspecting Authority is to be treated as date of delivery subject to
 successful acceptance. The inspection is carried out by Inspecting
 Authority, essentially road and endurance tests. Invariably, there is a
 considerable time lag between the offer for and the actual inspection
 due to various reasons. Company is supplying vehicles for more than two
 decades and there is no rejection of any vehicle till now. More over
 this being an ex-works contract, on successful inspection, the date of
 delivery relates back to the date of offer for inspection. Since the
 company has manufactured the vehicles as per the specification of the
 customer and the delay in formal inspection is beyond the control of
 the company, the Company is recognizing sales when accepted for
 inspection by the Inspecting Authority. The value of sales recognized
 during the year in respect of these vehicles, based on the offer and
 acceptance for inspection, pending formal acceptance, is Rs. 24489.00
 lakhs (Previous Year Rs. 18492.00 lakhs)
 
 (vi) Company supplies certain intermediary products to a Defence
 Research Establishment for the manufacture of sensitive / critical
 defence systems. These products are sent to a third party for the next
 stage of production on behalf of this establishment after the
 provisional clearance from the Inspecting Authority. The final
 inspection note from the Inspecting Authority will be issued only for
 the final system assembly, after various sub-assemblies from various
 establishments, engaged by this Defence Research Establishment are
 integrated, over which company has no control. Company is recognizing
 sale of these intermediary products based on the provisional clearance,
 as the delay in issuing the final certificate is beyond the control of
 the Company in view of the special complexities involved in the
 manufacture of the sensitive systems. The value of such sales
 recognized, pending final inspection certificate, during the year is
 Rs. 4928.00 lakhs (Previous Year Rs. Nil).
 
 2.  INVENTORIES
 
 (a) Negative work orders amounting to Rs. 2025.88 lakhs (Previous Year
 Rs. 3488.37 lakhs) were reduced to arrive at the closing value of Work
 in progress and the company does not expect to have any material impact
 on Cost of Production for the Financial Year 2010-11.
 
 (b) Includes materials lying with sub contractors Rs. 2033.40 lakhs
 (Previous Year Rs. 2469.95 lakhs) and with customers for trials etc Rs.
 33.62 Lakhs (Previous Year Rs. Nil). Of these, confirmation from the
 parties is awaited for Rs. 1137.32 lakhs (Previous Year Rs. 1638.90
 lakhs).
 
 (c) The identification of the value of Jigs (presently shown under
 Other Current Assets) to be disclosed under Fixed Assets as per the
 opinion of the Expert Advisory Committee of Institute of Chartered
 Accountants of India is pending/not feasible/not possible/not
 practicable. However there will be no impact on the Profit and Loss
 Account as the company is amortizing the expenditure incurred (which
 would be equivalent to the depreciation to be charged) in terms
 ofAccounting Policy No: 14(1).
 
 (d) The Company had accounted a receipt of Rs. 327.77 lakhs towards
 manufacture of Radio Control Dozer and Disaster management Equipment
 under Project funded by Technology Information and Forecasting and
 Assessment Control (TIFAC) which was kept under liabilities and the
 equipment was lying under FGI (after deration) at Rs. 78.66 lakhs till
 last year. Since the stipulated events as per agreement have taken
 place, the net amount of Rs. 249.11 lakhs has been treated as income
 during the year.
 
 (e) The closing stock of work-in-progress and finished goods are stated
 at standard cost which is nearly to actuals and the difference, if any,
 is not material.
 
 (f) Variances arising on account of difference between Standard Cost
 and the actual cost, on account of change in the nature of inputs from
 bought-out to internally manufactured or vice versa, timing difference
 between standard cost and actual occurrence during the financial period
 and fluctuations in the material prices, is adjusted in the Cost of
 Production in order not to carry forward the period variances to
 subsequent financial period.
 
 (g) Provision towards Obsolescence is made as per provisioning norms
 consistently followed and is based on ageing of inventory.
 
 (h) The Company has received materials free of cost with no value
 indicated and is held in trust for utilisation in manufacture of their
 products only.
 
 3.  SUNDRY DEBTORS
 
 (i) Debtors include Rs. 6631.38 lakhs (Previous Year Rs. 3676.05 lakhs)
 including VAT on account of additional provisional price accounted
 based on recommendation by the Chief Advisor (Cost), Ministry of
 Finance. The recommended price is under consideration by the Railway
 Board.
 
 (ii) Debtors includes an amount of Rs. 1480.60 lakhs (Previous Year Rs.
 1376.41 lakhs) being the differential amount claimed as reimbursement
 and the amount allowed by Railway Board on the wheel sets procured as
 per their terms of contract, in respect of contracts executed during
 the period from 2007-08 to 2009-10.  Normally the Wheel Sets were
 supplied by the Railway Board as a free supply item till then and the
 change in policy by Railway Board was due to severe capacity
 constraint. The disallowed amount relates to freight, sales tax and
 part of cost incurred. The Company has taken up this matter with the
 Appropriate Authority. The Company is of the view that, these claims
 are legally enforceable as they were made as per the terms of contract
 and hence confident of realizing the amount through appropriate
 representation before higher Authorities.
 
 (iii) Debtors include reimbursement claim of Rs. 82.84 lakhs (Previous
 Year Rs. NIL) from Railway Board towards the Excise Duty and VAT
 thereof Rs. 4.14 lakhs on the Rail coaches manufactured, consequent to
 the amendmentin the Finance Act, 2011, imposing Excise Duty on rail
 coach for the first time w.e.f. 1st March, 2011. The claim is under
 consideration by the Railway Board.
 
 (iv) Debtors include Rs. 13563.53 lakhs (Previous Year Rs. 9555.27
 lakhs) in respect of certain escalation claim as per the contract which
 is under consideration by Ministry of Defence.
 
 (v) During the year the Company entered into a factoring arrangement
 with banks and sundry debtors amounting to Rs. 13370.43 lakhs (Previous
 year Rs. Nil) has been sold to the banks.  This amount has been reduced
 from Sundry Debtors as on 31st March, 2011. The factoring cost incurred
 for the same is Rs. 180.75 lakhs. (Previous year Rs. Nil).
 
 4 FIXED ASSETS:
 
 i) Includes expenditure on development of land at KGF (1849 acres and 5
 guntas) received free of cost from Government of Karnataka.
 
 ii) Includes Cost of building at Kolkata valued at Rs. 26.82 lakhs
 (Previous Year Rs. 26.82 lakhs) on lease with an option to buy for a
 nominal sum of Rs. 0.15 lakhs at the end of 99 years from the date of
 taking possession viz., February''83 / April''84.
 
 iii) Includes cost of building at Mumbai and Ranchi pending
 registration / khatha transfer valued at Rs. 33.00 lakhs (Previous Year
 Rs. 33.00 lakhs).
 
 iv) Includes leased land measuring 374.59 acres taken from Kerala
 Industrial Infrastructure Development Corporation on a lease premium of
 Rs. 2547 lakhs for 99 years lease period with effect from 1.07.2009.
 
 v) Reconditioning cost included in Fixed Assets Rs. 99.55 lakhs
 (Previous Year Rs. Nil)
 
 5. The total amount towards Lease/Sale of facilities comprising mostly
 land, belonging to Bharat Gold Mines Limited (a Company under orders of
 winding up by BIFR)isyettobe ascertained.  The Company has started
 utilising the facilities from May 2005 and a sum ofRs. 100 lakhs has
 been paid, which is included under Loans & Advances (Schedule 11). As
 the nature of transaction is undecided, no amount has been charged to
 the profit and loss account till date.  The Company has incurred an
 expenditure towards creation of fixed Assets for a gross value of Rs.
 1209.01 lakhs (Previous Year Rs. 1133.65 lakhs) included under Schedule
 4 &Rs. 31.90 lakhs (Previous Year Rs. NIL) as capital work in progress
 included under Schedule 5 totalling to Rs. 1240.91 lakhs (Previous Year
 Rs. 1133.65 lakhs).
 
 7.  i) Sundry Debtors (including a sum of Rs. 35570.24 lakhs) (Previous
 Year Rs. 31539.00 lakhs) outstanding for more than one year which in
 the opinion of management is realisable, advances, balances with
 government departments, sundry creditors and deposits are subject to
 confirmation. There are certain old balances pending review/adjustment.
 The Management does not expect any significant impact upon such
 reconciliation.
 
 ii) Balance available in Provision for Contractual Obligations
 amounting to Rs. 10662.47 lakhs outstanding as on 01.04.2010 pertaining
 to certain Defence Order has been withdrawn as no longer required as
 the first set of the equipment has been successfully accepted by the
 customer, and no further liability is anticipated on this account.
 
 8.  INTER CORPORATE LOANS:
 
 As on 31s'' March 2011, the Company has received Rs. 14166.00 lakhs from
 M/s. Coal India Ltd, against Company''s Corporate guarantee, as a
 partial funding for a back to back financing of the term loan of Rs.
 7500.00 lakhs given by the Company to M/s. JK Industries Ltd, and Rs.
 7500.00 Lakhs to M/s. Apollo Tyres Ltd, (which is to be secured against
 first charge on the assets to be created by way of hypothecation in
 favour of the Company). These back to back loans are for setting up of
 additional manufacturing facility for OTR tyres in order to ensure
 uninterrupted supply of such tyres for equipment to be supplied by the
 Company to M/s. Coal India Ltd. The balance loans and interest
 outstanding as on 31st March, 2011 Rs. 14090.44 lakhs (Previous Year
 Rs. 15549.86 lakhs) are disclosed under Unsecured Loans - Schedule 3A
 and balance of loans given and interest amounting to Rs. 14779.56 lakhs
 (Previous Year Rs. 16250.41 lakhs) are included under Loans and
 Advances Schedule 11.
 
 10.  Pending completion of legal formalities as per foreign laws, in
 respect of foreign offices/ companies, the expenditure incurred thereof
 has been recorded in the Company''s books of accounts.
 
 11.  Loans and Advances includes Rs. 1067 lakhs (Previous Year Rs. 1067
 lakhs) incurred by the Company during 2005-06 on behalf of the R&D
 Centre of Excellence Society, a Society formed under the Karnataka
 Societies Registration Act, 1960, on reimbursement basis, for acquiring
 certain Hardware & Software. This amount will be returned by the Centre
 as and when the Grant is received from the Government of India, which
 is pending finalisation of the constitution of various members of the
 Society.
 
 12.  The Company has entered into a Consortium Agreement with Coal
 India Limited (CIL) and Damodar Valley Corporation (DVC) on 08.06.2010
 for acquiring specified assets of M/s Mining and Allied Machinery
 Corporation Limited (under liquidation) through Hon''ble High Court
 auction. Accordingly, a Company in the name of ''MAMC Industries
 Limited'' was formed and incorporated on 25.08.2010. Terms of
 Shareholders'' Agreement is negotiated and finalised and the same would
 be executed shortly. Upon such execution, the said new Company will be
 converted into a Joint Venture Company by allotting shares in the
 proportion 48:26:26 to BEML, CIL and DVC respectively. In this
 connection the Company has incurred a sum of Rs. 5208.12 lakhs (net of
 amount received from M/s CIL & M/s DVC as on 31st March, 2011). Pending
 allotment of shares as above, this sum is included in advances
 recoverable in cash or kind or for value to be received, under Schedule
 11.
 
 13.  The Company has invested in 54,22,500 equity shares at Rs. 10/-
 each in M/s BEML Midwest Limited which was incorporated on 18.04.2007
 at Hyderabad. The investment value comes to Rs. 542 Lakhs and this
 represents 45% share of the JV.
 
 However, due to certain unauthorised transactions by the Directors
 appointed by the other JV Partner, Midwest Granite Private Limited
 (MGPL), and the oppression and mis-management by the nominees of MGPL,
 the Company has filed a petition under section 397 & 398 of the
 Companies Act, 1956 seeking suitable relief in the matter, which is
 pending before Honourable Company Law Board.
 
 Further, the said Directors, against whom the above oppression and
 mis-management charges have been levelled, have substantial net worth.
 The Company is confident that the un-authorised transfer of funds made
 can be recovered and other issues resolved leading to further
 operations and hence no diminution in the value of this investment
 other than temporary, is anticipated and accordingly no provision has
 been made in the accounts for decline in the value other than
 temporary.
 
 14.  During the year, Company settled wage revision for workmen. This
 has impacted the expenses under the head of Employee Remuneration and
 Benefits by Rs. 12063 lakhs (net of provision), which include Rs. 5580
 lakhs for the current year and Rs. 6483 lakhs (net of provision) for
 the earlier years. Employee Remuneration and Benefits also include Rs.
 414 lakhs towards provision for officers'' pension contribution.
 
 15.  Figures of previous year have been regrouped/ reclassified/ recast
 wherever necessary to conform to current year''s presentation.