1.  The loans referred to in Schedule 3 are secured as under
 
 i) Fund Based and Non Fund Based Working Capital Facilities [3A(a) &
 (b)(ii)] granted by Consortium of Banks consisting of State Bank of
 India (As Lead Bank), Bank of Baroda, Exim Bank, Axis Bank Ltd., HDFC
 Bank Ltd., IDB1 Bank Ltd.,
 
 and Standard Chartered Bank are secured by an equitable mortgage on the
 immovable properties and hypothecation of movable plant and machinery
 and assets of the Company''s Materials Handling Equipment Division and
 Gear Division excluding certain assets specifically/ exclusively
 charged to other barks/ financial institutions but including the whole
 of the Company''s Currents Assets, inventories, receivables and book
 debts ranking pari passu inter se in respect of working capital
 facilities and guarantees issued by them in favour of various clients
 of the Company.  Standard Chartered Bank was inducted in consortium on
 28-09-2010 and documentation was made on 30-04-2011.
 
 ii) Term Loans (3A(b)(i)] obtained from Bank of Baroda, Exim Bank, Axis
 Bank Ltd., 1C1C1 Bank Ltd., Citi Bank N.A. and Vijaya Bank is secured
 by exclusive charge by way of Hypothecation on specific assets for
 which payments were made out of the term loan.
 
 iii) Capital Assets acquired on HP Loans from Banks [3B(a)| are secured
 by exclusive charge on respective assets purchase through those loans.
 
 2.  Contingnet Liabilities
 
 No provision has been made in the accounts in respect of the following:
 
 a) Disputed Excise Duty Rs. 269.38 Lacs (Previous Year Rs. 159.36 Lacs),
 against demand notices received so far.
 
 b) Disputed Sales Tax/ Works Contract Tax Rs. 347.55 Lacs (Previous Year
 Rs. 347.55 Lacs).
 
 c) In respect of disputed Income Tax demands:
 
 (i) Disputed by CompanyRs. 1079.65 Lacs (Previous Year Rs. 1254.61 Lacs)
 
 (ii) Disputed by Income Tax Authorities Rs. 22.47 Lacs (Previous Year Rs.
 52.62 Lacs)
 
 d) Guarantees issued by the Company''s Bankers Rs. 45,082.46 Lacs
 (Previous Year Rs. 42,854.59 Lacs)
 
 e) Liability for export obligation under Export Promotion Credit
 Guarantee Rs. 11,544.10 Lacs (Previous Year Rs. 11,759.25 Lacs).
 
 f) Sales Bills discounted under LC with Banks Rs. 3,713.74 Lacs (Previous
 Year Rs. 2,961.27 Lacs).
 
 g) Corporate Guarantees given on account of advance received from
 customers Rs. 257.06 Lacs (Previous Year Rs. 641.72 Lacs) and on account of
 performance Rs. 357.74 Lacs (Previous Year Rs. 573.59 Lacs)
 
 h) Unascertained amount in respect of a suit filed against the Company
 by a foreign collaborator for royalty and other allied matters.
 
 i) NexGen Energy Partners, LLC of USA has filed a case bearing no. 2011
 CV 0066, against Reflecting blue Technologies (RBT) of USA and the
 Company, in the court of Ohio, USA on account of non performing of Wind
 Mill supplied through Relfecting blue Technologies (RBT). The Company
 is in the process of filing the reply suitably in consultation with the
 lawyer. Since the matter is in preliminary stage, amount of claim is
 unascertainable.
 
 3.  The Company has provided Corporate Guarantee to Swedish Pension
 Authority to the tune of SEK 15.00 Million (Rs. 1,057.73 Lacs) as a
 security, in replacement of earlier guarantee given by erstwhile owner,
 for the purchase of pension insurances relating to the pension
 commitments on behalf of AB Benzlers Sweden, a step-down subsidiary of
 Elecon Transmission International Limited, Mauritius, a Wholly-owned
 Subsidiary of the Company.
 
 4.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs. 11,897.12 Lacs (Previous Year Rs. 2,275.82
 Lacs).
 
 5.  Technical Know how fees paid to Overseas Collaborators in pursuance
 of different Technology Know How Agreements during earlier years
 including current year has been treated as Miscellaneous Expenditure,
 and to be written off over a period of 6 years. In this account there
 was an opening balance ofRs. 260.48 Lacs (Previous Year Rs. 168.88 Lacs).
 During the year Rs. 176.57 Lacs have been paid and have been treated as
 Deferred. Out of total Rs. 437.05 Lacs, Rs. 92.58 Lacs (Previous Year Rs.
 66.15 Lacs) has been charged to Profit & Loss Account.
 
 6.  Profit on sale of investment shown under the head of other income
 in Profit & Loss Account includes an amount of Rs. 2,069.60 Lacs
 (Previous Year Rs. 1,595.81 Lacs) pertaining to profit on sale of long
 term investment.
 
 7.  Sundry Debtors includes retention money not due amounting to Rs.
 15,738.40 Lacs retained by various customers against big turnkey
 contracts as per the terms of agreement, and are receivable after
 satisfactory completion of the respective contracts.
 
 8.  The Company has not received information from vendors regarding
 their status under the Micro, Small and Medium Enterprises Development
 Act, 2006 and hence disclosure relating to amounts unpaid as at the
 year end together with interest paid/payable under this Act could not
 been given.
 
 9.  a) The sales are shown net of VAT/CST amounting to Rs. 2,525.61 Lacs
 (Previous Year Rs. 2,062.54 Lacs).
 
 b) The Sales figure includes Deemed Export Sales of ^ 7,900.67 Lacs
 (Previous Year Rs. 3,888.07 Lacs). The Gross Export Sales for the year is
 Rs. 5,578.45 Lacs (Previous Year Rs. 6,364.92 Lacs).
 
 Notes
 
 a.  Since, the figures of Alternate Energy Division (AF.D) are not
 reportable segment, as per the requirements of AS - 17, they are not
 shown separately.
 
 b.  The Company has disclosed Business Segment as primary segment.
 
 c.  Segments have been identified and reported taking into account the
 nature of products and services, the differing risks and returns, the
 organization structure and the internal financial reporting systems.
 
 d.  The Segment Revenue, Results, Assets and Liability include the
 respective amounts identifiable to each of the segment and amounts
 allocated on a reasonable basis.
 
 e.  Inter Segment Transfer Pricing Policy - the Gear supplied to
 Material Handling Equipment Division is based on cost.
 
 10.  Deferred Taxation
 
 Deferred Tax Assets and Liabilities are recognized as per Accounting
 Standard AS-22 on Accounting for Taxes on Income, issued by the
 Institute of Chartered Accountants of India.
 
 11.  Related Party Disclosure
 
 Related Party Disclosure as required by AS-18, are given below:
 
 i) Relationship:
 
 a-1) Subsidiary of the Company:
 
 - Elecon Transmission International Limited, Mauritius
 
 a-2) Step down Subsidiaries
 
 - David Brown Systems Sweden AB, Sweden
 
 - Radicon Transmission UK Limited, U.K.
 
 - AB Benzlers, Sweden
 
 - Elecon USA Transmission Limited, USA
 
 - Benzlers Transmission A.S., Denmark
 
 - Benzlers Antriebstechnik GmbH, Germany
 
 - Benzlers TBA B.V, Netherlands
 
 - Benzlers Antriebstechnik Gesmbh, Austria
 
 - OY Benzlers AB, Finland
 
 - Benzlers Malaysia
 
 b) Associates and Joint Ventures
 
 - Ringspann Elecon (I) Limited
 
 - Eimco Elecon (India) Limited
 
 - DRA (India) Limited
 
 - Elecon Australia Pty. Limited
 
 - Elecon Africa Pty. Limited
 
 - Elecon Singapore Pte. Limited
 
 - Elecon Middle East FZCO
 
 - Elecon Engineering (Suzhou) Co. Ltd., China
 
 - Elecon Windfarm Developers (Motagunda-Vinzalpur) Limited
 
 c) Individual having control / significant influence
 
 - Shri Prayasvin B. Patel
 
 d) Key Management Personnel
 
 - Shri Prayasvin B. Patel
 
 e) Enterprises over which (c) or (d) above have significant influence
 
 - Bipra Investments & Trusts Private Limited
 
 - Devkishan Investment Private Limited
 
 - K. B. Investments Private Limited
 
 - Elecon Information Technology Limited
 
 - Emtici Engineering Limited
 
 - Prayas Engineering Ltd.
 
 - Speciality Wood Pack Private Limited
 
 - Power Build Limited
 
 - Kirloskar Power Build Gears Limited
 
 - Akaaish Mechatronics Limited
 
 - Madhuban Prayas Resorts Limited
 
 - Narmada Travels Limited
 
 - Wizard Fincap Limited
 
 12.  Figures of previous year are regrouped and recast wherever
 necessary.
 
 13.  Schedules 1 to 17 form an integral part of Balance Sheet and
 Profit & Loss Account.