As at     As at 
                                       31-03-2011    31-03-2010
                                         Rs. crore      Rs. crore
 
 CONTINGENT LIABILITIES
 (to the extent not provided for)
 
 (a) Claims against the Company not 
 acknowledged as debts                     1.35         12.20
 
 (b) Sales tax liability that may 
 arise in respect of matters in appeal     5.45          4.35
 
 (c) Excise duty / service tax 
 liability that may arise in respect of
 matters in appeal preferred 
 by the Company                            7.08          6.08
 
 (d) Excise duty / service tax liability 
 that may arise in respect of
 matters preferred by the department       3.32          1.56
 
 (e) Income tax liability that may arise 
 in respect of matters in appeal
 preferred by the department               8.47          4.31
 
 (f) Guarantees / securities given on 
 behalf of subsidiary companies          123.70        218.11
 
 (g) Bills discounted                    100.87         83.38
 
 1 The Companys authorised share capital has increased from Rs. 260 crore
 to Rs. 276 crore comprising of 138,00,00,000 number of equity shares of Rs.
 2 each pursuant to the Scheme of Amalgamation of Brook Crompton Greaves
 Limited, a wholly owned subsidiary, with the Company. (Refer Note 23).
 
 2 The Company has, acquired three businesses of Nelco Limited, namely,
 Traction Electronics, Supervisory Control and Data Acquisition (SCADA)
 and Industrial Drives, at an enterprise value of Rs. 83.76 crore on 29th
 April, 2010.
 
 3 The Company, has entered into a joint venture agreement dated 10th
 September, 2010 with ZIV Applicaciones y Tecnologia, S. L., Spain, for
 establishing a joint venture company in India, for the manufacture,
 sale and rendering of services in Substation Automation Systems. The
 Company ‘CG-ZIV Power Automation Solutions Limited is incorporated on
 4th November, 2010 with total equity capital of Rs. 10 crore in which the
 Company is having a 70% shareholding.
 
 4 The Board of Directors of the Company has approved the Scheme of
 Amalgamation of CG Capital & Investments Limited, a wholly owned
 subsidiary, with the Company, with effect from 1st April, 2010 at their
 meeting held on 28th January, 2011. The effect of the amalgamation will
 be given in the financial statements upon receipt of Order from the
 Honourable High Court of Judicature at Bombay.
 
 5 Secured Loans
 
 (a) Term loans from banks are secured by way of equitable mortgage of
 land and buildings and by way of hypothecation of specific movable
 properties at certain locations.
 
 (b) Working capital demand loans from banks are secured by
 hypothecation of stocks and book debts, present and future.
 
 6 There are no amounts due and outstanding to be credited to the
 Investor Education and Protection Fund as at 31st March, 2011.
 
 7 Other liabilities include Rs. 8.30 crore (Previous year Rs. 8.30 crore)
 received as advance against sale of an immovable property of the
 Company.  As per the agreements with the buyers, the Company is
 entitled to forfeit the said amounts, if the buyers do not comply with
 the conditions of sale within the stipulated time. Since, the buyers
 have failed to comply with the conditions, the Company has forfeited
 these amounts in accordance with the terms of the agreements. The
 buyers have filed suits in the Courts for recovery of the advances paid
 by them. The Company contends that as per the force majeure clause in
 the agreements, these amounts are not required to be refunded. Pending
 disposal of the cases by the Courts, the Company, as a measure of
 prudence, has not recognised the said amount in the profit and loss
 account.
 
 8 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. 28.50 crore; (Previous
 year Rs. 32.57 crore).
 
 19 In view of the exemption granted by the Government of India, under
 Section 211 of the Companies Act, 1956 vide its Notification No. 301
 (E) dated 8th February, 2011 and the Company having complied with the
 conditions laid down therein, has opted not to disclose certain
 quantitative details under paragraphs 3(i)(a), 3(ii)(a) and 3(ii)(b) of
 Part-II of Schedule VI of the said Act.
 
 23 Disclosure as required by Accounting Standard (AS) 14 Accounting for
 Amalgamations:
 
 Scheme of Amalgamation of Brook Crompton Greaves Limited with the
 Company
 
 (a) In accordance with the Scheme of Amalgamation (the ‘Scheme) of the
 Brook Crompton Greaves Limited (the ‘BCGL) with the Company, as
 sanctioned by the Honourable High Court of Judicature at Bombay, vide
 their Order dated 18th June, 2010, the undertaking of BCGL, being, all
 its assets and properties, both movable and immovable, industrial and
 other licenses, all rights and obligations under the contracts,
 trademarks, all other interests, rights and powers of every kind, etc.,
 and all its debts, liabilities including contingent liabilities,
 duties and obligations, has been transferred to and vested in the
 Company retrospectively with effect from 1st April, 2009 (the Appointed
 Date). The Scheme has, accordingly, been given effect to in the
 financial statements. The effective date of amalgamation is 6th July,
 2010.
 
 (b) BCGL is engaged in the business of manufacturing of electric
 motors.
 
 (c) The amalgamation has been accounted for under the ‘pooling of
 interest method as prescribed by Accounting Standard (AS) 14
 Accounting for Amalgamations, specified by the Companies (Accounting
 Standards) Rules, 2006. Accordingly, the assets, liabilities and
 reserves of BCGL as at 31st March, 2009 have been taken over at their
 book values. (As stipulated in the said Scheme, the reserves of the
 transferor Company have been transferred to the respective reserves.)
 
 (d) BCGL, being a wholly owned subsidiary of the Company, the entire
 paid-up share capital has been cancelled and the company stands
 dissolved without winding-up.
 
 (e) The amalgamation has resulted into increase in the authorised share
 capital of the Company by Rs. 16.00 crore comprising 80,000,000 equity
 shares of Rs. 2 each.
 
 (b) The Company makes contribution towards provident fund and
 superannuation fund as a defined contribution retirement benefit plan
 for qualifying employees. To fund the benefits, the Company is required
 to contribute a specified percentage of salary to the respective
 Trusts, which administer the retirement benefit schemes.
 
 (c) The Guidance issued by the Accounting Standard Board (ASB) on
 implementing the Accounting Standard states that the provident funds
 set up by employers, which require interest shortfall to be met by the
 employer, needs to be treated as defined benefit plan. The Fund does
 not have any existing deficit or interest shortfall. As per the
 Companys Actuary, any future obligation arising due to interest
 shortfall cannot be measured reliably. However, having regard to the
 assets of the Fund and return on the investments, the Company does not
 expect any deficiency in the foreseeable future.
 
 (d) The Company makes annual contributions to the Crompton Greaves
 Limited Gratuity Trust, which is funded defined benefit plan for
 qualifying employees. The Scheme provides for lump sum payment to
 vested employees at retirement, death while in employment or on
 termination of employment as per the Companys Gratuity Scheme. Vesting
 occurs upon completion of five years of service.
 
 (e) The Company provides post retirement medical benefits to qualifying
 employees.
 
 (f) The actuarial valuation of plan assets and the present value of the
 defined benefit obligation were carried out at 31st March, 2011. The
 present value of the defined benefit obligation and the related current
 service cost and past service cost, were measured using the Projected
 Unit Credit Method.
 
 24 Disclosure as required by Accounting Standard (AS) 15 Employee
 Benefits: (Contd.)
 
 (g) Discount rate is based on the prevailing market yields of Indian
 Government securities as at the balance sheet date for the estimated
 term of the obligations.
 
 (h) Expected rate of return on the plan assets is based on the average
 long-term rate of return expected on investments of the Fund during the
 estimated term of the obligations.
 
 (i) The salary escalation rate is arrived after taking into
 consideration the seniority, the promotion and other relevant factors,
 such as, demand and supply in employment market.
 
 25 Disclosure as required by Accounting Standard (AS) 17 Segment
 Reporting: (Contd.)
 
 III Segment Identification, Reportable Segment and definition of each
 Reportable Segment:
 
 (a) Primary segment
 
 In the opinion of the management, the business segment comprises the
 following:
 
 (i) Power Systems      : Transformer, Switchgear, Turnkey Projects 
                          and Power SCADA (Supervisory control and data
                          acquisition systems)
 
 (ii) Consumer Products : Fans, Appliances, Luminaires, Light Sources
 and Pumps
 
 (iii) Industrial Systems : Electric Motors, Alternators, Drives,
                            Traction Electronics and SCADA
 
 (b) Primary / Secondary segment reporting format:
 
 (i) The risk-return profile of the Companys business is determined
 predominantly by the nature of its products and services. Accordingly,
 the business segment constitutes the primary segment for disclosure of
 segment information.
 
 (ii) In respect of secondary segment information, the management has
 identified its geographical segments as: (a) Domestic; and (b)
 Overseas. The secondary segment information has been disclosed
 accordingly.
 
 (c) Segment identification:
 
 Business segments have been identified on the basis of the nature of
 products / services, the risk-return profile of individual businesses,
 the organizational structure and the internal reporting system of the
 Company.
 
 (d) Reportable segments:
 
 Reportable segments have been identified as per the quantitative
 criteria specified in the Accounting Standard.
 
 (e) Segment revenue and results:
 
 The expenses and incomes which are not directly attributable to any
 business segment are shown as unallocable expenditure (net of
 unallocated income).
 
 (f) Segment assets and liabilities:
 
 Segment assets include all operating assets used by the business
 segment and mainly consist of fixed assets, debtors and inventories.
 Segment liabilities primarily include creditors and other liabilities.
 Common assets and liabilities which cannot be allocated to any of the
 segments are shown as a part of unallocable assets / liabilities.
 
 (g) Inter segment transfer:
 
 Inter segment prices are normally negotiated amongst segments with
 reference to the costs, market price and business risks. Profit or loss
 on inter segment transfers are eliminated at the Company level.
 
 26 Disclosure as required by Accounting Standard (AS) 18 Related Party
 Disclosures: (Contd.)
 
 ii) List of related parties with whom transactions were carried out
 during the year and description of relationship
 
 Subsidiaries:
 
 1 CG Capital & Investments Limited
 
 2 CG Energy Management Limited
 
 3 CG PPI Adhesive Products Limited
 
 4 CG-ZIV Power Automation Solutions Limited
 
 5 CG International B.V.
 
 6 CG Power Systems USA Inc.
 
 7 CG Sales Networks Americas Inc.
 
 8 CG Sales Networks France SA
 
 9 CG Power Systems Belgium N.V.
 
 10 CG Power Systems Canada Inc.
 
 11 CG Holdings Belgium N.V.
 
 12 CG Electric Systems Hungary Zrt.
 
 13 CG Automation Systems UK Limited
 
 14 PT. CG Power Systems Indonesia
 
 Associates:
 
 1 CG Lucy Switchgear Limited
 
 2 Avantha Power & Infrastructure Limited
 
 3 International Components India Limited (upto 4th October, 2010)
 
 4 Brook Crompton Greaves Limited (upto 26th August, 2009)
 
 Key Management Personnel:
 
 1 Gautam Thapar - Chairman and Promoter Director
 
 2 Sudhir Trehan - Managing Director
 
 Other Related Parties in which a directors are interested:
 
 1 Ballarpur Industries Limited
 
 2 Solaris ChemTech Industries Limited
 
 3 BILT Graphic Paper Products Limited
 
 4 Asia Aviation Limited
 
 5 Avantha Holdings Limited
 
 6 Salient Business Solutions Limited
 
 7 Avantha Technologies Limited
 
 8 Avantha Realty Limited (formerly Janpath Investments & Holdings
 Limited)
 
 9 Korba West Power Company Limited
 
 10 Corella Investments Limited
 
 11 Lustre International Limited
 
 12 Solaris Holding Limited
 
 13 KCT Chemicals & Electricals Limited
 
 14 Sabah Forest Industries Sdn. Bhd.
 
 15 International Components India Limited
 
 16 Malanpur Captive Power Limited
 
 27 (a) The Company has not entered into any finance lease as specified
 in Accounting Standard (AS) 19 Leases. The Company has, however , taken
 various residential / commercial premises and plant and equipments
 under cancellable operating lease. These lease agreements are normally
 renewed on expiry, wherever required.
 
 (b) There are no exceptional / restrictive covenants in the lease
 agreements.
 
 30 Disclosure as required by Accounting Standard (AS) 29 Provisions,
 Contingent Liabilities and Contingent Assets:
 
 (b) Nature of Provisions:
 
 (i) Product Warranties: The Company gives warranties on certain
 products and services in the nature of repairs / replacement, which
 fail to perform satisfactorily during the warranty period. Provision
 made represents the amount of the expected cost of meeting such
 obligation on account of rectification / replacement. The timing of
 outflows is expected to be within a period of two year.
 
 (ii) Provision for sales tax represents sales tax liability on account
 of non-collection of declaration forms and other legal matters which
 are in appeal under the Act / Rules.
 
 (iii) Provision for excise duty / service tax represents the
 differential duty liability that is expected to materialise in respect
 of matters in appeal.
 
 (iv) Provision for liquidated damages has been made on contracts for
 which delivery dates are exceeded and computed in reasonable and
 prudent manner.
 
 (v) Provision for litigation related obligations represents liabilities
 that are expected to materialise in respect of matters in appeal.
 
 33 Figures for the previous year have been re-grouped / re-classified
 wherever necessary.