1 (a) In the opinion of the Management, the current assets, loans &
 advances are realizable at the values stated, if realized in the
 ordinary course of business and the provisions for all known
 liabilities are adequate.
 
 (b) The account of Debtors, Loans, Creditors and Loans & advances are
 subject to confirmation / reconciliation and the amounts of Sundry
 Debtors, Creditors and Advances are stated on net basis, on the basis
 of control account, and accordingly the same are subject to necessary
 adjustments or re-grouping /classification. In this process, the
 previous year figures of loans have been re- grouped and reclassified.
 
 (c) Sales include Export Sales of Rs. 219.70 Million of which shipment
 has taken place in next Financial Year.
 
 (d) Power and Fuel expenses are inclusive of duties and taxes of Rs.
 53.32 Millions(Previous year Rs. Nil) paid towards power generation.
 
 (e) During the year Foreign Exchange Fluctuation loss of Rs. 308.10
 Million has been charged to Material Cost and Rs. 157.95 Million to
 Interest Expenses.
 
 (f) The Company has filed application for refund of Terminal Excise
 Duty of Rs. 15.7 Million and the same is included in Loans and Advances
 Balances. The said claim is under dispute and has been rejected by the
 Department but the Management is of the opinion that the company will
 receive the claim; therefore the same is treated as good for its
 realization and not provided for as expenses.
 
 (g) During the year foreign interest hedging expenses of Rs. 89.91
 Millions paid towards settlement has been deferred over the entire
 period of the forward contract.
 
 (h) Company is recognizing the exchange rate difference on settlement
 or restatement of foreign currency monetary assets and liabilities in
 the profit & loss account as per the pre-revised Accounting Standard
 -11 ''Accounting for effects of changes in foreign exchange rates''
 issued by The Institute of Chartered Accountants of India. By
 exercising the option related to amortization of foreign exchange
 fluctuation differences as per the notification dated March 31, 2009
 issued by the Ministry of Corporate Affairs the exchange difference
 arising on restatement or settlement of long term foreign currency
 monetary items in so far as they relate to acquisition of a depreciable
 capital asset are adjusted to the cost of such asset and depreciated
 over the balance life of the asset. Accordingly, in the Financial Year
 2009-10, on the full payment of the loan, foreign exchange gain of Rs.
 145.25 Millions has been reduced from the cost of fixed assets and
 consequently depreciation thereon for the current year is provided on
 the balance value of the assets.
 
 2. Miscellaneous expenditure includes total Research and Development
 expenses of Rs. 176.07 Million (Previous Year Rs. 152.02) incurred on
 development of Hybrid Bus/T-Cab/project, which is still in progress and
 said expenses would be written off in five years from the year of
 completion.
 
 3.  SEGMENT REPORTING UNDER ACCOUNTING STANDARD 17 : 
 
 (A) Business Segment
 
 Based on the guiding principles given as per Accounting Standard on
 Segment Reporting (AS-17) issued by The Institute of Chartered
 Accountants of India, the Company''s primary business is manufacturing
 and marketing of Induction Furnaces, Steel items and Battery Operated
 Vehicles.
 
 4.  RELATED PARTY (AS IDENTIFIED BY THE COMPANY) DICLOUSURES UNDER
 ACCOUNTING STANDARD 18:-
 
 A.  List of Related Parties
 
 I) SUBSIDIARY COMPANIES
 
 1.  Jinhua Indus Enterprises Limited.
 
 2.  Jinhua Jahari Enterprises Limited.
 
 3.  Bhaskarpara Coal Company Limited
 
 4.  ET Elec-Trans Limited
 
 5.  Hans Ispat Limited
 
 6.  Shree Ram Electrocast Private Limited
 
 7.  Shree Hans Papers Limited
 
 8.  Electrotherm Mali SARL
 
 II) ASSOCIATES:
 
 I.  Ahmedabad Aviation and Aeronautics Limited 
 
 2.  Crystal Real Estate Pvt. Limited
 
 3.  Palace Tours and Air Charters Pvt. Limited
 
 4.  Western India Speciality Hospital Limited
 
 5.  Mangalam Information Technologies Pvt. Limited 
 
 6.  Liberty Finance and Leasing Co. Pvt. Limited
 
 7.  E-Motion Power Limited 
 
 8.  Indus Elec-Trans Pvt. Limited
 
 9.  Magnum Limited.  
 
 10.  Alwar Trading and Investment Company
 
 11.  Afghan Trading Pvt. Limited 
 
 12.  Bhandari Brothers Commercial Pvt.  Limited
 
 13.  Palanpur Reality Developers Pvt. Limited 
 
 14.  Jayshri Petro-Yarn Pvt. Limited
 
 15.  Adroit Trading and Investment Co.  
 
 16.  EIL Hospitality Pvt.  Limited
 
 17.  EIL Realty Pvt. Limited 
 
 18.  EIL Software Pvt. Limited
 
 19.  EIL Software Services Offshore Pvt. Limited 
 
 20.  EIL Technology Pvt. Limited
 
 21.  Electrotherm Engineering & Projects Limited 
 
 22.  Electrotherm Infrastructure Pvt. Limited
 
 23.  Electrotherm Renewables Pvt. Limited 
 
 24.  Electrotherm Foundation.
 
 25.  Gujarat Mint Alloys Limited 
 
 26.  Indus Real Estate Pvt. Limited
 
 27.  ICS Commercial Pvt. Limited 
 
 28.  New Delhi Real Estate Pvt.  Limited
 
 29.  Palace Infrastructure Pvt. Limited 
 
 30.  S B Realty Developers Pvt.  Limited
 
 31.  Sun Infrapower Pvt. Limited 
 
 32.  Sun Residency Pvt. Limited
 
 33.  Suraj Real Estate Pvt. Limited 
 
 34.  S N Advisory Pvt. Limited
 
 35.  Suraj Advisory Services Pvt. Limited 
 
 36.  Bhandari Charitable Trust.
 
 37.  Airfones Innovatives Pvt. Limited 
 
 38.  BNB Real Estate Pvt.  Limited
 
 39.  Electrotherm Energy Holdings Limited 
 
 40.  Electrotherm Solar Limited
 
 41.  Firefly Energy Limited 
 
 42.  Indus Coils & Plates Limited
 
 43.  Inspira Solar Energy Limited 
 
 44.  NET Architectures Pvt. Limited
 
 45.  Bhandari Real Estate Pvt. Limited
 
 III) KEY MANAGEMENT PERSONNEL: (Other than Nominee & Independent
 Director)
 
 1.  Mr. Mukesh Bhandari (Chairman & Chief Technology Officer)
 
 2.  Mr. Shailesh Bhandari (Managing Director)
 
 3.  Mr. Narendra Dalal (Whole-time Director)
 
 4.  Mr. Avinash Bhandari (Joint Managing Director & CEO)
 
 IV) RELATIVES OF KEY MANAGEMENT PERSONNEL: (With whom Transaction has
 taken Place during the year)
 
 1.  Mrs. Indubala Bhandari
 
 2.  Mrs. Jyoti Bhandari
 
 3.  Mr. Rakesh Bhandari
 
 5.  The Company has determined Pre-Operative Expenditure (including
 borrowing cost) of Rs. 260.09 Millions (Previous year: Rs. 388.66
 Millions) and the same have been allocated towards the respective fixed
 assets.
 
 6.  In compliance of Accounting Standard 22 issued by Institute of
 Chartered Accountants of India, Deferred Tax liability mainly arising
 on account of difference between book and income tax written down value
 of fixed assets, after adjusting unabsorbed depreciation, during the
 year deferred tax liability of Rs. 50.63 Millions (Rs. 120.39 Millions)
 has been provided.
 
 7.  CONTINGENT LIABILITIES/ UNPROVIDED LIABILITY:- 
 
 (A) The Company is liable for following contingent liabilities:- 
 
 (i) Disputed Statutory Claims/Levies for which the company has
 preferred appeal in respect of Income Tax liability of Rs. 1.42
 Millions (Previous Year Rs. 1.42 Millions), VAT liability of Rs. 0.61
 Millions (Previous Year Nil), Excise Liability of Rs. 2788.40 Millions
 (Previous Year Nil).  The above amounts are excluding the amount of
 Interest payable and of the amount involved in appeal preferred by the
 department, if any.
 
 (ii) Guarantees / Counter Guarantees (including un-utilized Letters of
 Credit) issued Rs. 2808.86 Millions (Rs. 362.49 Millions in Previous
 year).
 
 (iii) Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs. 40.00 Millions.  (Previous Year Rs.
 58.73 Millions.).
 
 (iv) The company is contingently liable for the pending disputed labour
 and other matters, approximately amounting to Rs. 1.00 Millions
 (Previous Year Rs. 2.28 Millions).
 
 (v) The company has executed Legal Undertaking Bond to pay Central
 Excise Duty (Terminal Excise Duty), levies and liquidated damages
 payable, if any, in respect of imported and indigenous capital goods
 and stores and spares consumed duty free, in the event that certain
 terms and conditions are not fulfilled. In this regard aggregate duty
 liability amount of Rs. 271.05 Millions as at March 31, 2011 (Previous
 Year: Rs. 299.57 Millions). Against these, exports amounting to Rs.
 1972.76 Millions (previous year Rs. 2396.56 Millions) will have to be
 made within next 8 years from the date of issue of license.
 
 (vi) The amount of sundry debtors is net of Bills discounted of Rs.
 34.99 Million with bankers (Previous year Rs. Nil).
 
 (B) The Company is liable for Un-provided liabilities of VAT of Rs.
 0.39 Million(Previous Year Rs.Nil).
 
 (C) The Claim for Input Vat Credit receivable of Rs.691.67Millions is
 subject to the sanction of the additional amount of Incentive of VAT,
 by Industries Commissioner.
 
 8.  During the Financial year 2009-10, in pursuance of the Scheme of
 Arrangement approved by the Hon''ble High Court of Gujarat vide its
 order dated November 30, 2009, the financial statements of the company
 were restated as under:- 
 
 i.  Immovable assets of the Company, namely Land and building, on the
 basis of Revaluation report of the Government approved competent Valuer
 appointed by the Company were recorded at their respective fair values
 and resulting increase over Book Value, of Rs. 2481.95 million, was
 transferred to General Reserve Revaluation Account.
 
 ii.  Rs. 500 million was transferred from Share Premium Account to
 Business Development Reserve (BDR) Account and entire BDR Account had
 been utilized for writing off obsolete or unrealizable assets,
 unrealizable loans and/or advances etc.
 
 9.  Previous year''s figures have been re-arranged/ regrouped
 /reclassified/Re-casted wherever necessary.
 
 10.  Signed Schedule No.1 to 21 forms part of the Annexed account of
 the Company.