1.1 Terms/rights attached to equity shares
 
 The company has only one class of equity shares having a par value of
 Rs.1 per share. Each holder of equity shares is entitled to one vote per
 share. The company declares and pays dividends in indian rupees. The
 dividend proposed by the Board of Directors is subject to the approval
 of the shareholders in the ensuing Annual General Meeting. During the
 year ended 31 March 2012, the amount of per share dividend recognized
 as distributions to equity shareholders was Rs. 0.15/- (31 March 2011 : Rs.
 0.10/-)
 
 2.1 Term Loans :
 
 The particulars of loans drawn, nature of security, terms of repayment,
 rate of interest, instalments due and loan wise outstanding are as
 under.
 
 2.1.1 Current Maturities of Long Term Loans
 
 instalments due within 12 months from the date of Balance Sheet
 classified as current as shown above are discloused under  Other
 Current Liabilities
 
 2.1.2 Term Loan from IDBI, SBI, SBH and SB Indore :
 
 The Term Loans from IDBI, State Bank of Hyderabad, State Bank of India
 and State Bank of Indore (since merged with SBI), are secured by a
 first charge on the movable and immovable assets (both present and
 future) of the company, (save and except book debts and exclusive
 charges already created if any) situated (a) at Lalgadi Malakpet and
 Aliabad Villages, Shameerpet Mandal, Ranga Reddy Dist, (b) at Nandigaon
 Village, Mahbubnagar Dist, (c) at Bhootpur Village, Mahaboobnagar Dist,
 (d) at Kandivalasa Village, Vijayanagaram Dist, and (e) at VSEZ,
 Visakhapatnam Dist. The loans are also secured by a second charge on
 the current assets of the company. These loans are also guaranteed by
 Managing Director and one Director in their personal capacity.
 
 2.1.3 Term Loan from Axis Bank (Balance on 31.03.2012 Rs.4179.00 Lakhs)
 :
 
 The Term Loans from Axis Bank are secured by exclusive charge on the
 movable and immovable assets of the Company situated (a) at Tumkunta
 Village, Ranga Reddy Dist, (b) at IMT Manesar, Gurgoan, Haryana, (c) at
 Goverdhanpuri Colony, Yapral, GHMC, (d) at IIE, Ranipur, BHEL, Haridwar
 (Uttaranchal), (e) at Selaqui, Dehradun (Uttaranchal), and (f) at MIDC,
 Navi Mumbai. These loans are also guaranteed by Managing Director and
 one Director in their personal capacity.
 
 2.1.4 Term Loan from Axis Bank Rs. 10000.00 Lakhs Loan (Balance on
 31.03.2012 Rs. 9000.00 Lakhs):
 
 The Term Loan is secured by first pari passu charge on Fixed Assets
 (excluding vehicles and assets exclusively charged to other term
 lenders) and second charge on Current Assets. Also guaranteed by the
 Managing Director and one Director in their personal capacity. This
 Term Loan is repayble 14 quarterly instalments at an interest Rate of
 13.75% p.a. Number of instalments outstanding as on 31-03-2012 is 12.
 
 2.1.5 Term Loan from EXIM Bank of India Rs. 825.00 Lakhs:
 
 The Term Loan to part finance Equity contribution in Gulf Batteries
 Company, a Joint Venture in Kingdom of Saudi Arabia (KSA) is secured by
 first pari passu charge on the entire fixed assets of the company
 excluding exclusive charges, if any, and pledge of Company''s share
 holding in Joint Venture and also guaranteed by the Managing Director
 of the Company in his personal capacity. This Term Loan is repayble 17
 quarterly instalments at an interest Rate of 12.70% p.a. Number of
 instalments outstanding as on 31-03-2012 is 15.
 
 2.1.6 Term Loan from ICICI Bank :
 
 The term loan of Rs.6000 lakhs for Capex and Rs.4000 lakhs for working
 capital is secured by subservient / residual charge on all current and
 moveable assets of the Company both present and future. The charge is
 subservient to the existing lenders to the extent of all drawn and
 undrawn limits of term loans and working capital only and the loan is
 guaranteed by the Managing Director and one Director in their personal
 capacity.
 
 2.2 Other Loans :
 
 2.2.1 Term loans from HDFC Ltd:
 
 The Term Loans for acquiring Flats are secured by an exclusive charge
 on the Flats acquired and also guaranteed by the Managing Director of
 the Company in his personal capacity.
 
 2.2.2 HDFC Bank
 
 The Term Loans for acquiring vehicles are secured by exclusive
 hypothecation of vehicles acquired through execution of D.P. Note.
 
 2.2.3 Equipment Loan from First Leasing Company of India Ltd. :
 
 The loan is secured by exclusive charge on the Equipment procured and
 also guaranteed by one Director in his personal capacity.
 
 2.3 Interest Free Sales Tax Loan (IFST):
 
 IFST Loan of Rs.1678.81 lakhs shown under unsecured loan represents the
 Sales tax payable by the Company given as Loan by A.P State Government
 under a scheme, to be repaid without interest after 14 years from the
 date of availment. Earliest repayment is due from the year 2013-14. The
 loan requires creation of a charge on the assets of the Company.
 Pending creation of charge, the amount is shown as ''Unsecured Loan'' to
 be regrouped as Secured Loan as and when the charge is created.
 
 2.4 There were no continuing defaults as on the Balance Sheet date in
 repayment of loan instalments and interest
 
 3.1 Short Term Loan from IDBI:
 
 Short Term Loan from IDBI Bank for acquisition of land for setting up
 new facility at Mahaboobnagar District is secured by D.P Note, post
 dated cheques for the entire loan and undertaking to create first
 charge on the Assets in the event of default. The loan is due to be
 repaid on 27-05-2012 (since repaid)
 
 3.2 Working Capital Loans
 
 The Working Capital Loans from the State Bank of India, State Bank of
 Hyderabad, IDBI Bank Ltd and State Bank of Indore (since merged with
 SBI) are secured by a first charge on all the chargeable current assets
 and by a second charge on the fixed assets (both present and future) of
 the Company. All the loans are also guaranteed by Managing Director,
 two other Directors of the Company, and Smt. A. Uma Devi in their
 personal capacities
 
 3.3 There were no defaults as on the Balance Sheet date with regard to
 the above short term borrowings.
 
 4.1 Trade Paybles include Rs. 6099.11 Lakhs (Previous year : Rs. 609.06
 Lakhs ) outstanding in the nature of Buyers Credit from banks.
 
 5.1 There were no amounts due and outstanding as on the Balance Sheet
 date to be credited to Investor Education & Protection Fund
 
 6.1 Intangible Assets and Intangible Assets under development
 (Internally Generated)
 
 a) During the previous accounting periods, the company decided to enter
 consumer batteries in the segments of UPS, Invertor, Automotive
 including for electric vehicles.  Entry into these segments was
 attempted initially based on minor modifications to the company''s
 existing product lines for industrial batteries. However, these
 products were not found suitable in the market for the intended
 applications. Resulting costs and losses were absorbed by the company
 in the relevant accounting periods.
 
 b) Based on the inputs received from the market/users and to
 manufacture products that would be properly suited for the specific
 applications, the company, during the year 2011 -12 undertook
 substantial development activities and improvements by changing the
 product design, materials, manufacturing processes and developed
 prototypes for different models/ratings. Such costs were initially
 recognised as revenue, pending final decision to classify the
 expenditure as Intangible Assets upon meeting recognition criterion.
 
 c) Considering the significant development activities undertaken and
 substantial technical improvements made in development phase, as
 internally generated knowledge gained prior to commercial production of
 the new design models and considering the volume of expenditure
 incurred in development phase the future economic benefits that will
 flow to the company by way of sales revenue and cost reduction, the
 management has decided to reclassify the expenditure and to recognise
 the costs incurred in the development phase as '' Intangible Assets-New
 Product Development expenditure within the meaning of Accounting
 Standard 26(lntangible Assets). While recognising Intangible Assets,
 the estimated value of reusable material content in prototypes is
 excluded and shown as inventory.
 
 6.2 Using the technical and market knowledge gained during the
 development process and after successful internal testing of
 prototypes, commercial production was taken up for certain
 models/ranges and sales commenced in the year 2011-12. Amortisation of
 expenditure for these products was started as per Accounting
 Policy(Refer Note.11 above). In respect of other Products where
 development is in an advanced stage or further modifications are
 required and commercial production expected shortly, the costs incurred
 (net of estimated reusable material content) is shown as  Intangible
 Assets under development (Refer value of Note.13 below).
 
 7.1 Investments/Advance for Investments:
 
 7.1.1 Bhagirath Energy Systems Pvt Ltd (a wholly owned subsidiary),
 Nepal was under liquidation and a provision of Rs.29.48 Lakhs was made
 towards fall in the value of investment upto 31.03.2012. The Company
 made an application to Reserve Bank of India for disinvestment of
 Equity in Bhagirath Energy Systems Pvt Ltd and pending receipt of
 Equity proceeds, the provision is continued. The company expects to
 receive the proceeds in F.Y.2012-13
 
 7.1.2 The investment of Rs.20.03 lakhs held on 31.03.2011 in the
 Subsidiary Company, HBL Power Systems (M) SDN BHD was disposed off
 during the year for Rs.32.86 lakhs and the resultant profit of Rs.12.82
 lakhs is shown as exceptional income.
 
 7.1.3 M/s. Agile Electric Drives Technologies & Holdings (P) Ltd
 (Agile Holdings), a subsidiary of HBL Power Systems Ltd, has 3
 subsidiares on 31.03.2011 namely Igarashi Motors India Ltd (IMIL),
 Agile Electric Sub Assembly (P) Ltd(AESAPL) and Igarashi Motor Sales
 (P) Ltd (IMSPL). As part of Amalgomation scheme finalised and waiting
 Honble High Court''s Approval Agile Holdings is merging w.e.f.
 01.04.2011 with its sibsidiary '' AESAPL''.  Pending necessary approvals
 of the scheme of Amalgamation, the investment made and held by HBL
 Power Systems Ltd in '' Agile Holdings'' is continued as such. Necessary
 changes will be made after required approvals are received in this
 regard.
 
 7.1.4 During the year, the Company acquired additional 40% of Equity
 in SCIL Infracon (P) Ltd, Hyderabad for Rs.417.79 lakhs thus
 aggregating to 90% of Equity. Further, the Company has made an advance
 of Rs.25.00 lakhs during the year for acquiring balance 10% of Equity
 in the said Company which is shown under Loans & Advances.
 
 7.1.5 The Company incorporated a wholly owned subsidiary. HBL America
 Inc, in America with an Authorised Capital of USD 1 Million and the
 company invested USD 0.40 Million (Rs.195.88 lakhs) as capital in the
 wholly owned subsidiary.
 
 7.1.6 The Equity shares held by the company in Gulf Batteries Company
 Ltd (a Joint Venture) are pledged to Exim Bank by way of Security for
 the loan to part-finance in the Equity contribution in the Joint
 Venture.
 
 7.1.7 During the year, the Company acquired 8.433% of equity in
 Sankhya Infotech Ltd. (a Listed Company) for Rs.390.77 lakhs in
 addition to the exsisting Equity of 9.89% of Equity in the said Company
 totalling to 18.323% of the Equity for a Total value of Rs. 721.80
 Lakhs.
 
 7.1.8 During the year, a LLP, HBL Suntech LLP, was incorporated on
 28.09.2011 by HBL Power Systems Ltd (60% share) and Mrs. Deepa
 Shashidhar Kuckian (40% share) with an agreed initial Capital of
 Rs.200.00 Lakhs.  Against agreed Capital contribution of Rs.120 Lakhs
 (60% share), HBL Power Systems Ltd invested Rs.18.30 Lakhs upto
 31.03.2012
 
 7.1.9 Based on MOU entered by the company, M/s.HBL Miltrade Pte Ltd,
 Singapore, allotted one share (Face value - One Singapore Dollar) to
 the company. The company is yet to remit the same. Pending remittance,
 Investment is not disclosed in the Balance Sheet.
 
 8.1 Claims & Other Receivables
 
 During the year, due to heavy rainfall, there was a damage to one of
 the factory buildings and incidental damage to Plant & Machinery and
 stocks in process. The assets are insured under reinstatement value
 policy which is in force on the date of incident. The total cost for
 repairing, rebuilding the factory shed/acquiring related machinery and
 damaged inventory is estimated at Rs. 264.00 Lakhs. The claim has been
 intimated and is in process. The actual cost incurred towards the above
 as on 31.03.2012 amounting to Rs. 87.71 Lakhs is shown under Claims &
 Other Receivables which is subject to settlement.
 
 Note : 9 Introduction of Revised Schedule VI :
 
 The Revised Schedule VI notified under the Companies Act, 1956, has
 become applicable to the company for the year ended 31.03.2012 for
 preparation and presentation of its financial statements. The adoption
 of Revised Schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements. However,
 it has significant impact on presentation and disclosures made in the
 financial statements.  The company has also reclassified the previous
 figures in accordance with the requirments applicable in the current
 year.
 
 Note : 10 Contingent Liabilities not provided for and commitments:
 
 All known and undisputed claims and liabilities where there is present
 obligation as a result of past events and it is probable that there
 will be an outflow of resources, have been duly provided for.
 
 
 
                                                           (Rs. In Lakhs)
 
 Nature of Contingent Liability          31 March 2012   31 March 2011
 
 10.1 Contingent liabilities not 
      provided for:
 
      a) Un-executed portion of letters 
      of credit opened by Bank                6,064.93        3,975.13
 
 
      b) Un-expired guarantees issued 
      on behalf of the Company
      by banks for which the Company 
      gave counter guarantees                13,958.17      *15,521.22
      * includes Bank Guarantees issued 
      to others on behalf of a Subsidiary
      Company Rs.900 Lakhs
 
      c) Corporate Guarantee issued to 
      ICICI Bank on behalf of Igarshi 
      Motors India Ltd (a step down 
      subsidiary of the company) for the 
      loan facilities sanctioned to them.    7,600.00                -
 
      d) Legal undertakings (LUTs) given 
      to Custom''s Authorities for clearing
      the imports at Nil / Concessinal 
      rate of duty pending for fulfilment 
      of export obligations, (net of the 
      export obligations fulfilled of
      Rs.3509.74 lakhs (previous year 
      Rs.2302.49 lakhs) for which the 
      process of discharging the LUTs by 
      the concerned authorities is at 
      various stages).                       4,586.53         2,736.36
 
      e) Claims against the Company not 
      acknowledged as debt:
 
      Excise duty claim                        286.13            94.85
 
      Sales Tax claim                           61.45             4.84
 
      Custom duty claim                         31.96            36.67
 
      Property Tax claim of VSEZ unit           27.64            27.64 
 
      Fuel surcharge adjustment (FSA) 
      claim to the extent billed by Power
 
      Power Distribution Companies of A.P      122.02            97.34
 
      Other claims                               8.17            34.42
 
      f) Income Tax Dispute for Asst.
         Year 2009-10                           65.08                -
 
 10.2 Estimated amount of contracts 
      remaining to be executed on
      Capital account and not 
      provided for                           1,699.64         3,580.82
 
 10.3 Investments committed by the 
      Company in the Equity of other
      Companies:
 
      M/s. Sankhya Infotech Ltd. against 
      share warrants issued by them
     (net of 50% contributed as 
      on 31.03.11)                                  -           195.38
 
      M/s. SCIL Infracon Pvt Ltd. Against 
      purchase of 10000 shares
     (net of Rs. 25.00 Lakhs contributed 
      as on 31.03.2012)                        135.00                -
   
      M/s. HBL Suntech,LLP against 60% 
      Share in LLP
     (net of Rs. 18.30 Lakhs contributed 
      as on 31-03-2012)                        101.70                -
 
 
 
 Note : 11 Incometax and Sales Tax Assessments:
 
 11.1 Income Tax:
 
 The Company''s assessments were completed upto Financial Year 2008-09
 and the tax dues as per orders were paid and charged to revenue except
 for disputed issues under Appeal. Tax assessments for the year 2009-10
 and 2010-11 are pending and the tax dues as per returns filed have been
 fully paid. The liability, if any, in respect of such pending
 assessments, that may arise upon completion is not ascertainable at
 this stage.
 
 11.2 The Company has no taxable income for the year 2011-12 under the
 normal computation as per the provisions of the Income Tax Act, 1961.
 However, the company has taxable income on book profits (MAT) Under
 Section 115 JB of the Income Tax Act and the same has been paid and
 disclosed as  Current Tax . Considering the probable future economic
 befinefits that will flow to the company by way of set off of MAT
 against future regular tax liability within the specified period as per
 the privisions of the Income Tax Act, the company has recognised MAT
 credit entitlement as an asset and credited the same to Profit & Loss
 statement.
 
 11.3 Sales Tax:
 
 The Company has paid/provided VAT/CST as per the records and returns
 filed upto 31.03.2012 after considering the Input VAT on purchases and
 also on the basis of concessional Forms expected to be received from
 customers.  The liability, if any, in respect of pending assessments
 including those relating to non-submission of concessional Forms (''C''
 Forms etc.) is not ascertainable at this stage. The company is in the
 process of collecting concessional Forms from customers for submission
 before the assessments are completed/finalised.
 
 Note : 12 Confirmation of Balances
 
 Balances appearing under Trade Receivables, Trade Payables, Advances to
 suppliers/others and advances from customers are subject to
 confirmation/ reconciliation and consequential adjustments.
 
 Notes:(a) The company''s operations include Batteries of different
 types, Electronics, Railway Signalling contracts etc. Except for
 Batteries, the segment revenue, the segments results and the segments
 assets and liabilities of other activities are individually below the
 threshold limit of 10% as provided in AS-17 Segment Reporting.
 Accordingly, Batteries segment is shown separately as reportable
 segment and others are included in Unallocated segments.
 
 (b) Batteries segment consists of various types of batteries for
 defence, aviation, telecom and industrial application.
 
 (c) Inter segment revenue is measured at the market prices at which the
 products are sold to external Customers
 
 Note : 13 Disclosure as per AS-18 Related Party Disclosure;
 
 1 Holding Company : Beaver Engineering & Holdings Ltd, Hyderabad
 
 2 Subsidiaries : Bhagirath Energy Systems Pvt Limited, Nepal
 
 Agile Electric Drives Technologies & Holdings Pvt Ltd
 
 SCIL Infracon Pvt Ltd
 
 HBL Germany, GMBH
 
 HBL America
 
 HBL Suntech LLP
 
 3 Step Down Subsidiaries of Subsidiary : Agile Electric Sub Assembly
 (P) Ltd
 
 Igarshi Motors India Ltd Igarshi Motors Sales (P) Ltd
 
 4 Joint Venture : Gulf Batteries Company Ltd, Kingdom of Saudi Arabia
 
 5 Controlled Companies : Kairos Engineering Limited, Hyderabad
 
 6 Associate : Naval Systems & Technologies Pvt Ltd
 
 Guided Missile Engineering India Pvt Ltd
 
 7 Companies which Directors are Interested
 
 : Auto TEC Systems (P) Ltd, Bangalore Sankhya Infotech Ltd
 
 8 Key Management Personnel : Dr A J Prasad Chairman & Managing Director
 
 M S S Srinath Whole Time Director
 
 Kavita Prasad Whole Time Director Ashok Nagarkatti
 
 P Satish Kumar (Up to 31st October 2011)
 
 Note : 14 Disclosure as per AS-19 Leases;
 
 Finance Leases Nil
 
 Operating Leases:
 
 Future lease Rents Payable:
 
 Not Later than one year. Rs. 11.73 Lakhs
 
 Later than one year and not later than five years.  Rs. Nil
 
 Later than five years Rs. Nil
 
 Lease Rents for the year recognised in the Profit & Loss a/c (under
 Maintenance-Office Equipment) Rs.11.73 Lakhs
 
 The Company''s interest in the above company is reported under the head
 Investment (Note-14) and stated at Cost.  Pending receipt of
 Audited/Unaudited financial statements of JV company for the year
 ending 31-03-2012, the disclosure of the company''s share of the
 Assets/Liabilities, Income and Expenses is not made as required under
 AS-27