1.  nature of operations:
 
 The principal activities of the Company comprise manufacturing and
 installation of cold rolling mills, galvanizing lines, colour coating
 lines, tension levelling lines, skin pass mills, acid regeneration
 plants, wet fux line and pickling lines for ferrous and non- ferrous
 industries world wide.
 
 2.  Contingent liabilities:
 
                                                            (Rs in lacs)
 sr. no.   Particulars                          2010-2011     2009-2010
 
 1.        Bank Guarantees                       3,803.39     10,035.85
 
 2.       Letter of Credit to suppliers          1,870.45      1,115.38
 
 3.       Advance Licence – customs duty 
          element                                  246.67         49.16
 
 4.       Claims against the Company not 
          acknowledged as debts
 
     (a) Excise duty (including 
         interest and penalty)                       -           193.17
 
     (b) Service Tax*                             337.19         280.84
 
     (c) Income Tax                                 -             33.67
 
     (d) Labour Matter                              5.00           5.00
 
 * During the period October 2007 to February 2008, the Company has paid
 service tax on the Commission charged by their non-resident commission
 agents for the services rendered in connection with sales of the
 assessees fnished goods in overseas market and availed Cenvat Credit.
 The Central Excise department has issued a show cause Notice No.
 F.No.V(CH84)3-06/ Dem./2009-10,dated 29.10.2009 for denial of wrongly
 availed Cenvat Credit of Rs140.41 lacs of service tax paid as input
 service during the period October 2007 to February 2008. The
 Commissioner of Central Excise, Customs and Service tax vide their
 order No.14/Dem./Vapi/2010 dated 12.04.2010 upheld the service tax
 liability of Rs196.76 lacs including interest of Rs56.35 lacs with
 additional penalty of Rs140.43 lacs. An appeal has been fled by the
 company before CESTAT, Ahmedabad vide appeal No.STS/326/2010. The
 Honorable CESTAT, Ahmedabad, has passed a stay order in favour of the
 company and dispensed with the condition of pre-deposit of the duty and
 penalty amount to the tune of Rs337.19 lacs vide order No.
 5/570/WZB/AHD/2011 dated 05-04-2011.
 
 Tax relating to earlier years (net credit) Rs101.21 lacs [2009-2010:
 (net debit) Rs38.66 lacs] as disclosed in the Profit and Loss Account,
 is afiter adjusting Rs9.34 lacs - debit (2009-2010: Rs7.05 lacs -
 credit) based on assessment orders / judgments received by the Company
 during the year in respect of earlier years for matters relating to
 Income tax and Fringe Benefit tax, as the case may be.
 
 Note: Previous years fgures have been given in brackets above.
 
 Disclosures pursuant to AS-29 on Provisions, Contingent Liabilities and
 Contingent Assets – Recognition Criteria:
 
 (a) Expected timing of any resulting outfow of economic benefits – over
 the next 2-3 years.
 
 (b) Indication of uncertainty of these outfows – due to estimates and
 depending on the actual claims for warranties that may be received in
 future or circumstances that may arise in future concerning
 provisioning for estimated loss on contracts.
 
 (c) There is no amount of any expected reimbursement in respect of
 these provisions.
 
 The Company expects to contribute Rs50.00 lacs (2009-2010: Rs50.00
 lacs) to its Gratuity plan.
 
 The estimates of future salary increases considered takes into account
 the infation, seniority, promotion and other relevant factors.
 
 In assessing the Companys employees benefits Liabilities the actuary
 monitors mortality assumptions and uses up-to-date mortality tables,
 the base being the LIC 1994-96 ultimate tables.
 
 * Due to absence of data provided by LIC, break-up of plan assets
 (asset allocation) in insurer managed funds have not been furnished.
 
 The above information has been certified by the actuary and relied upon
 by the auditors.
 
 *Includes revenue from services rendered in the form of supervision and
 erection and sale of spares on composite long–term contracts. See
 break-up of income from services rendered below.
 
 note:
 
 Since the Company is a Project Management Company and engaged in the
 business of putting up Projects for its clients on turnkey basis, the
 Company is following Percentage of Completion Method as prescribed
 under Accounting Standard-7 - Construction Contracts under which
 project stock, manufactured items, bought out items and other direct
 costs are considered as Project Costs incurred till date. In view of
 the above, it is not possible to give the details of manufactured items
 in terms of its quantity and corresponding values. The same is the case
 with trading items as well. The nature of these items is totally
 dissimilar. Therefore, it is not possible to split and disclose the
 quantitative information as required by Schedule VI to the Companies
 Act, 1956.
 
 notes:
 
 (a) The appointments of the current Managing Director and Deputy
 Managing Director were approved in the Annual General Meeting held on
 July 31, 2010.
 
 (b) The excess managerial remuneration amounting to Rs406.26 lacs paid
 to two former whole-time directors (one of whom has since deceased) in
 an earlier year was in excess over the limit, specifed under the
 relevant provisions of the Companies Act, 1956.
 
 (c) The Companys three cars have been retained by the two former
 directors, namely, Late Mr.T.R.Mehta and Mrs. Nishi T. Mehta when they
 ceased to be the whole time directors of the Company on June 25,
 2008.The book written down value of the cars was Rs16.02 lacs, whilst
 this is not an allowable item for managerial remuneration under the
 Companies Act, 1956.
 
 (d) The approvals for waiver from the Central Government have been
 received on May 16, 2011.
 
 3. segment information:
 
 (1) Geographical segments:
 
 The Company has considered geographical segments as the primary segment
 for disclosure. For the purpose of Segment reporting, the Company has
 identifed two geographical segments which comprises of Overseas and
 India. The segments have been identifed taking into account the
 differing risks and returns relating to these geographical areas.
 
 (2) secondary segments:
 
 As the Companys business activity falls within a single business
 segment i.e. OEM manufacturer and project management company in the
 steel sector, the disclosure requirement of Accounting Standard (AS-17)
 for secondary segment reporting is not applicable.
 
 During the previous year, the Company has entered into agreement with
 CMI SA for providing knowhow, access to various industrial processes,
 development and implementation of strategy, access to best practices
 for business operations, exploitation of knowledge for new business
 initiatives, access to new global business opportunities etc. The
 agreement is effective from January 1, 2010.
 
 The Company has also entered into an agreement with CMI SA for rights
 to use the CMI Brand name. The Company will pay 0.6% of net sales. The
 agreement is effective from January 1, 2010 and the tenure of the
 agreement is 5 years.
 
 operating leases:
 
 The Company has taken residential premises/godowns (including furniture
 and fittings therein as applicable) under operating lease or leave and
 license agreements. These are generally non-cancellable and range
 between 11 months and 3 years under leave and license. Amount debited
 to rent account under Manufacturing and Other Expenses amount to
 Rs109.60 lacs (2009-10: Rs Rs.  118.41 lacs). Future minimum lease
 obligations for aforesaid leave and license covenants are detailed
 below:
 
 The figures for the previous year have been regrouped wherever necessary
 to conform to the current years classification.