1.1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
 FOR) :
 
                                                          Rs.in Lacs
 
                                                 2011-12     2010-11 
 
 Particulars 
 
 1 Contingent Liabilities
 
 a) Guarantees given by the Banks               17281.31    13649.99
 
 b) Performance Corporate 
 guarantees given by the 
 Company to various contractees.                  963.76      807.67
 
 c) Claims against the company
 not acknowledged as debts                        120.59      120.59
 
 d) Additional Sales Tax demand 
 excluding Rs902.26 lacs (Previous year
 Rs905.24 lacs) recoverable from
 
 customers for the years 1980-81
 to 2009-10 under appeal.                        568.20      506.32
 
 e) Demands raised by Excise 
 department excluding interest, if any,
 leviable thereon.                              1649.72     1877.10
 
 f) Additional Service Tax demand 
 excluding those recoverable from
 customers upto the Year 2010-11
 under appeal.                                  3576.68     3488.18
 
 g) The Company had received notice 
 under section 148 of the Income Tax
 Act 1961 for reopening of assessment 
 for the year ended 31st March 2004
 in respect of its investments made 
 in long term Capital Gains Bonds.
 The Company has challenged re-
 opening of assessment by filing 
 a writ petition in the High Court 
 of Bombay. The Writ Petition has been
 dismissed by the High Court of 
 Bombay. The Company has filed Special
 Leave Petition (SLP) in the Supreme 
 Court of India, which is pending
 for admission. Meanwhile, Income 
 Tax Department has began the
 assessment
 proceeding, however, no demand of 
 income tax has been received in this
 matter till date.                                  -              -
 
 2 Capital Commitments
 
 Commitments for Capital Expenditure 
 are estimated at                                298.31            -
 
 3 other Disclosures
 
 In respect of fraud at two factories 
 reported in the last annual
 report, following is the position 
 in current year.
 
 a) Out of Rs 17.39 lacs, Rs 15.05 
 lacs has been recovered/ adjusted upto
 May 2010. One of the party has 
 challenged the recovery/
 adjustments and
 the matter is subjudice. The 
 criminal complaints against 
 the parties
 and ex-employees involved in 
 the fraud are pending in the 
 court and for
 balance amount legal action 
 has been initiated.
 
 b) As reported in the last report 
 the misappropriated amount involved
 is Rs 44.82 lacs. The proceedings 
 of the Criminal case filed against the
 ex-employee of the Company have 
 been concluded and the accused was
 convicted and awarded punishment 
 of 3 years imprisonment and was
 released, as the accused was in 
 judicial custody for 3 years 4 
 months.
 For recovery of aforesaid amount, 
 civil suit proceedings are in
 progress.
 
 1.2 Research and Developement Expenditure:
 
 Expenses on Research and Developement during the year under various
 heads amount to Rs236.66 lacs (Previous year Rs 203.55 lacs)
 
 1.3 Confirmations have not been received from some of the Debtors,
 Creditors and Depositors.
 
 NOTES:
 
 1 business segments
 
 The Company has considered business segment as the primary reporting
 segment for disclosure. The products included in each of the reported
 domestic business segments are as follows:
 
 a.  Construction contracts including water supply schemes, pipes supply
 & laying projects.
 
 b.  Others include Railway Sleepers, Air Rifles and Other Miscellaneous
 items.
 
 Segment revenue relating to each of the above domestic business
 segments includes income from services provided, wherever applicable.
 The above business segments have been identified considering:
 
 1.  The nature of products & services
 
 2.  The differing risks & returns
 
 2 There are no inter segment sales.
 
 3 Since the Company does not have any significant business outside
 India there are no reportable geographic segments.
 
 1.4 Employee Benefits (Continued)
 
 Accumulated compensated absences (non vesting)
 
 Actuarial valuation of sick leave has been made on 31-03-2012.
 Provision in respect of this benefit amounts to Rs 13.86 lacs for the
 financial year ending 31-03-2012. (Previous year Rs 10.18 lacs.)
 
 Gratuity cost, as disclosed above, is included under Employee benefit
 expenses
 
 VI provident Fund
 
 The Company contributed Rs 40.79 lacs towards Provident Fund during the
 year ended 31st March 2012. (Previous year Rs 46.24 lacs.)
 
 1.5 Remuneration:
 
 Remuneration paid to Chairman & Managing Director is in excess of the
 limits specified in Schedule XIII of the Companies Act, 1956 by Rs 69
 lacs. The Company has made an application seeking approval from Central
 Government. Approval is awaited. The approval for the same from the
 shareholders will be sought in ensuing Annual General Meeting.
 
 1.6 Current Liabilities include Rs 1.99 lacs towards unclaimed amounts
 of preference shares redeemed and Rs 0.55 lacs towards unclaimed
 proceeds from sale of fractional shares issued pursuant to the bonus
 issue made by the Company in the year 2005-06.
 
 1.7 In the opinion of the Board, all assets other than Fixed Assets
 and Non-Current Investments have a value on realisation in the ordinary
 course of business at least to the amount at which they are stated.
 
 1.8 The financial statements for the year ended March 31, 2011 had
 been prepared as per the then applicable, pre-revised Schedule VI to
 the Companies Act, 1956. Consequent to the notifications of Revised
 Schedule VI under the Companies Act, 1956, the financial statements for
 the year ended March 31, 2012 are prepared as per Revised Schedule VI.
 Accordingly, the previous year figures have also been reclassified to
 conform to this year''s classification. The adoption of Revised Schedule
 VI for previous year figures does not impact recognition and
 measurement principles followed for preparation of financial
 statements.