2010-2011        2009-2010
                                           (Rs.in lacs)     (Rs.in lacs)
 
 1. Contingent liabilities in respect of:
 
 i) Bank guarantees                             707.52        1,054.35
 
 ii) Claims against Company not 
 acknowledged as debt                         1,625.88        1,622.02
 
 iii) Bonds/Undertaking given by the 
 Company for                                  1,485.39        2,594.40
 concessional duty/exemption to customs
 
 iv) Show Cause Notice / adjudication orders 
 issued by the Service tax/Entry Tax/         1,799.33           50.60
 Stamps authority, disputed by the company
 
 v) Penalty for delayed payment of Service 
 tax disputed before                                 -          120.29
 Appellate authority already stayed 
 unconditionally
 
 vi) Guarantees & Letter of Comfort on 
 behalf of a Subsidiary Company               2,053.68        2,155.28
 
 vii) Corporate Guarantee for Equipment Hiring       -        1,047.25
 
 viii) Service-tax /VAT/WCT disputed in Appeals 474.56          122.55
 
 ix) Bills Discounted                        10,046.25               -
 
 2. The disclosure in respect of the amounts payable to enterprises
 which have provided goods and services to the Company and which qualify
 under the definition of micro and small enterprises, as defined under
 Micro, Small and Medium Enterprises Development Act, 2006 as at March
 31, 2011 has been made in the financial statement based on information
 received and available with the Company. On the basis of such
 information credit balance of such enterprise as on March 31, 2011 is
 Rs.2,724.21 lacs (Previous year Rs.1,358.29 lacs) and there are no
 overdues of such enterprises. Auditors have relied upon the same.
 
 3.  Overdraft and bill discounting facilities are availed from banks
 outside India against assignment of project specific receivables
 proceeds.
 
 4.  Advance taxes paid, including tax deducted at sources are shown as
 assets net of provision of tax including foreign tax. Provision for tax
 (including foreign tax) is made after considering depreciation,
 deductions and allowances allowable under income tax regulations.
 
 5.  In the opinion of the management the balances shown under sundry
 debtors, accrued value of work done and loans and advances have
 approximately the same realizable value as shown in the accounts.
 However, these balances are subject to confirmations.
 
 6.  Face value of the Equity Shares of the Company was sub-divided
 from 1 share of Rs.10/- each to 5 Shares of Rs.2/- each pursuant to the
 approval of Shareholders at Extra-Ordinary General Meeting held on
 August 28, 2010. Accordingly, the basic and diluted earnings per share
 of the previous period have been restated in accordance with Accounting
 Standard -20 Earnings Per Share to make the same comparable.
 
 7.  In accordance with the AS-22, Accounting for Taxes on Income,
 issued by the Institute of Chartered Accountants of India, net deferred
 tax liability from timing differences amounting to Rs.1066.52 lacs
 (Previous Year Rs. 1407.84 lacs) is accounted for using applicable
 current rate of tax. Major components of deferred tax are as follows:
 
 8.  The Management is of the opinion that as on the Balance Sheet
 date, there are no indications of a material impairment in the value of
 fi xed assets. Hence, the need to provide for an impairment loss does
 not arise.
 
 9.  Zinc and aluminum are internationally traded commodities and
 prices refer from the quotations on the London Metal Exchange / London
 Metal Bullion Association. The Company faces commodities price risks
 arising from the time lag and quantity difference between the purchases
 of zinc and aluminum and sale of product. In order to hedge its
 exposure to commodity price risk, the Company enters into forward
 contracts in future market. The Company does not enter into hedging
 contracts or transactions for speculative purposes. The hedging
 transactions are used only for the purposes to manage exposure to
 commodity price risks.  The income and gain/loss arising on this
 account are adjusted as part of cost of the respective material.
 
 10.  On May 06, 2010, the Company issued 4,192,114 equity shares of
 Rs.10/- each at a premium of Rs.1,064.20 per share aggregating to Rs.
 45,031.69 lacs to the Qualifi ed Institutional Investors under SEBI
 (Issue of Capital and Disclosure Requirements) Regulations, 2009 for
 the purpose of capital expenditure, expansion of manufacturing capacity
 (transmission line towers), long-term investment in PPP, BOT, BOOT and
 BOOM projects, development of EPC services, further investment in
 existing divisions and subsidiaries, working capital and such other
 purposes as may be permissible under applicable laws and government
 policies, including strategic initiatives such as investment and/or
 acquisitions. Pending utilization of the QIP proceeds for the purposes
 mentioned, they have been temporarily invested in fi xed deposits with
 banks and units of mutual funds. The proceeds from the issue have been
 utilized as follows:
 
 11.  Retirement benefit plans
 
 a) Defined contribution Plans
 
 The Company makes contribution towards provident fund, a Defined
 contribution retirement benefit plan for qualifying employees. The
 provident fund plan is operated by the Regional Provident Fund
 Commissioner. The Company recognized Rs. 674.64 lacs (Previous Year
 Rs.530.37 lacs) for provident fund contributions in the Profit & loss
 account. The contributions payable to these plans by the company are at
 rates specifi ed in the rules of the scheme.
 
 b) Defined benefit plans
 
 The Company made annual contributions to the Employees Group Gratuity
 cash accumulation scheme of the Life Insurance Corporation of India, a
 funded Defined benefit plan for qualifying employees. The scheme
 provides for payment to vested employees at retirement, death while in
 employment or on termination of employment of an amount equivalent to
 15 days salary payable for each completed year of service or part
 thereof in excess of six months. Vesting occurs upon completion of fi
 ve years of service.
 
 The present value of the Defined benefit obligation and the related
 current service cost were measured using the Projected Unit Credit
 method as per actuarial valuation carried out at the balance sheet
 date.
 
 The following tables sets out the status of the gratuity plan as
 required under AS-15 and the amounts recognized in the Companys fi
 nancial statements as at March 31, 2011.
 
 12. Related Party disclosure as required by Accounting Standard -18 is
 as below: 
 
 (a) List of related parties 
 
 (i) a) Subsidiaries:
 
 - JMC Projects (India) Limited
 
 - Shree Shubham Logistics Limited
 
 - Energy Link (India) Limited
 
 - Amber Real Estate Limited
 
 - Kalpataru Power Transmission (Mauritius) Limited
 
 - Kalpataru South Africa (Pty) Limited
 
 - Kalpataru Power Transmission Nigeria Limited
 
 - Kalpataru Power Transmission USA INC
 
 - Adeshwar Infrabuild Limited
 
 - Jhajjer Power Transmission Private Limited
 
 - Kalpataru Metfab Private Limited 
 
 b) Indirect Subsidiaries:
 
 - JMC Mining and Quarries Limited
 
 - Saicharan Properties Limited
 
 - Brij Bhoomi Expressway Private Limited
 
 (ii) Enterprises under significant infl uence, which are having
 transaction with Companies:
 
 - Kalpataru Properties Private Limited
 
 - Kalpataru Theatres Private Limited
 
 - Property Solution (India) Private Limited
 
 - P.K. Velu & Co. Private Limited 
 
 (iii) Key Managerial Personnel:
 
 - Pankaj Sachdeva - Managing Director
 
 - Manish Mohnot - Executive Director
 
 - K.V. Mani - Managing Director (Upto 31.05.2009)
 
 (iv) Individuals having significant infl uence :
 
 - Mofatraj P. Munot - Promoter Director
 
 - Parag Munot - Promoter Director 
 
 (v) Joint Ventures :
 
 - Jhajjer KT Transco Private Limited
 
 - KPTL-JMC-Yadav-JV (Dankuni to Baruipara Line- Eastern Railways)
 
 - KPTL-JMC-Yadav-JV (Taljhari to Maharajpur Line- Eastern Railways)
 
 - KPTL-JMC-Yadav-JV (Baruipara to Chandanpur Line- Eastern Railways)
 
 - KPTL-JMC-Yadav-JV (Deshparan Nanigaram Line- South Eastern Railways)
 
 - GPT-KPTL-JV (Kalukhali to Bhatiapara Line), Bangladesh
 
 13. I. The Company has entered into consortium with JSC Zangas, Russia
 separately for four gas pipeline projects (i) Vijaipur to Kota, (ii)
 Panvel to Dabhol (iii) Vijaipur to Dadari and (iv) Dadari-Panipat in
 Infrastructure Division, sharing contract receipts. The contract
 receipts, common expenses, assets and liabilities have accordingly been
 accounted for in these accounts as per terms of separate consortium
 agreement based on unaudited accounts of all the consortium.
 
 14. The Companys significant leasing/ licensing arrangements are
 mainly in respect of residential / offi ce premises and equipments,
 which are operating leases. The aggregate lease rental payable on these
 leasing arrangements are charged as rent and equipment hire charges in
 these accounts amounting to Rs. 4900.38 lacs (previous year Rs.6546.59
 lacs).
 
 These leasing arrangements are for a period not exceeding 5 years and
 are in most cases renewable by mutual consent, on mutually agreeable
 terms. Future lease rental payable in respect of assets on lease for
 not later than 1 year is Rs. 539.85 lacs (previous year Rs. 896.15
 lacs) and for later than 1 year but not later than 5 years is Rs.
 374.09 lacs (previous year Rs.677.89 lacs).
 
 15. The accounts of foreign operations in companys overseas branches
 in Philippines, Algeria, Ethiopia, Kenya, Abu Dhabi, Kuwait Djibouti
 and South Africa have been incorporated on the basis of balance sheet
 and Profit and loss account audited locally at the respective
 branches. In respect of overseas branch in Nepal and Qatar accounts for
 the year have been prepared and audited in India.
 
 16.  A sum of Rs. 1,065.54 Lacs is receivable from eligible Certifi ed
 Emission Reduction (CERs) from Senter Novem, an agency of Government of
 Netherland & Atmosfair GmbH of Germany , on account of generation of
 electricity from agricultural residues like mustard husk and cotton
 sticks at Sri Ganganagar & Tonk Power Plant under the Clean Development
 Mechanism (CDM) of Kyoto Protocol for preventing environmental
 degradation. The same has been accounted for at contracted price and
 when there is reasonable certainty about its ultimate realization.
 
 17.  Company has commitment to pledge 5,893,123 Equity Shares of
 Rs.10/- each for financial assistance to Jhhajar KT Transco Pvt. Ltd.
 with banks and financial institutions.
 
 18.  Previous years figures have been regrouped and/or rearranged
 wherever considered necessary.