1.  Contingent Liabilities not provided for:
 
                                                        (Amount in Rs.)
 
 Sr.
     Particulars
 No.                                        Current Year  Previous Year
 
 A Disputed Income Tax Liability              39,434,222     39,434,222
   (A.Y.2005 - 2006)
 
 B Disputes Sales Tax Liability                  178,345            Nil
   (F.Y. 2007- 2008)
 
 C. The Company had sold some of its Land in 2006 – 07. Out of the said
 property, there is dispute regarding Plot No. 62. The decision is
 pending from the Special Suit before the Civil Judge Sr. Division,
 Thane. If the outcome of the decision is against the Vendor, the sale
 stands canceled and company stands to indemnify the vendor for the
 cost, loss and damages, except taxes, if any.  Company has not provided
 against this contingent liability and will meet the liability, as and
 when it arises.
 
 2.  Out of the secured loans:
 
 a) Loans & advances of Rs. 211 Lacs (Previous Year Rs. 132 Lacs) on
 Cash Credit Account are secured by hypothecation of inventory and book
 debts and collaterally secured by mortgage of land and building of the
 company at Bhiwandi Plant.
 
 b) Term Loans from Banks amounting to Rs. 690.15 Lacs (Previous Year :
 Nil) is secured by hypothecation of Plant & Machinery as well as
 factory building at Nagpur Plant and collaterally secured by mortgage
 of land and building of the company at Bhiwandi Plant. It may be noted
 that the formalities for hypothecation of plant and machinery and
 factory building at Nagpur Plant are in progress.
 
 c) Further, term loan from bank amounting to Rs.8.18 Lacs (Previous
 year Rs.10.42 Lacs) is secured by vehicles purchased out of the said
 term loan.
 
 d) Out of secured Term Loans, an amount Rs.120.83 Lacs (Previous year
 Rs.1.71 Lacs) is payable within next twelve months.
 
 3.  According to the Memorandum of Understanding for sale of land (Plot
 No. 125), the party has failed to fulfill few terms and in current year
 company has written back the advance of Rs.5.51 Lacs received in
 previous year. As per the terms, the Company has recognized Rs.10.00
 Lacs as income for in previous year, as the purchaser have not executed
 the sale deed for the said plot within stipulated period as mentioned
 in MOU. In current year company has sold the same land to new purchaser
 and income of Rs.10.00 Lacs booked as mentioned is reversed in the
 books and net income is booked for current year.
 
 4.  The Company is in communication with its suppliers to ascertain the
 applicability of the provisions of The Micro, Small and medium
 Enterprises Development Act, 2006. As on the date of this Balance
 Sheet, the Company has not received any communication from any of its
 suppliers regarding filling of necessary memorandum with the appointed
 authority. In view of this, information as required u/s 22 of the said
 Act is not given.
 
 5.  The Company has single product, namely Food Processing Machinery.
 Consequently, there are no Reportable Segments of the Company as per
 the Accounting Standard (AS) 17- Segment Reporting as prescribed by
 Companies'' (Accounting Standards) Amendment Rules, 2007.
 
 6.  In cases where letters of confirmation have been received from
 parties, book balance have been generally reconciled and adjusted, if
 required. In other cases, balance in accounts of sundry debtors, sundry
 creditors and advances or deposits have been taken as per books of
 account.
 
 7.  Estimated amount of contracts remaining to be executed on Capital
 Accounts and not provided for (net of advances Rs.349.19 Lacs) –
 1154.52 Lacs (Previous year Nil).
 
 8.  After the end of the financial year 2010-11, at the request of the
 workers, the company declared Voluntary Retirement Scheme (VRS) for
 them. All the workers opted for the VRS with effect from 30th April
 2011. As per the scheme the company has agreed to pay aggregate
 compensation to the tune of Rs.645.12 Lacs to the workers.
 
 In view of the VRS, the liability on account of gratuity'' and leave
 salary'' is provided on actual basis instead of actuarial basis.
 
 9.  After the end of the financial year 2010-11, the company has
 entered into an agreement to sale'' a portion of its land at Bhiwandi.
 As per the terms of the agreement the company would sell 2.32 acres of
 its land for a consideration of Rs. 1000 lacs. As per the terms of the
 agreement, the company has received an advance of Rs. 200 lacs in April
 2011 and the transaction would be completed by the end of July 2011.
 
 10.  Related parties, as defined under clause 3 of Accounting Standard
 (AS 18) Related Party Disclosure issued by the Institute of Chartered
 Accountants of India.
 
 1) Key Management Personnel :
 
 Jeetendra M. Shende - Executive Director
 
 Relatives of Key Management Personnel :
 
 Wife – Nilima J. Shende
 
 Son – Shantanu J. Shende
 
 2) Enterprise in which Directors are interested:
 
 Kirloskar Consultants Limited
 
 3) Subsidiary Company :- G.G. Dandekar Investments Pte. Limited.
 
 11.  Previous year''s figures have been regrouped and /or rearranged
 wherever necessary.