A) OTHER NOTES
 
 1 Interest paid - others Rs.215,467,384/- (Rs.251,349,429/-) is net of
 Rs.30,080,238 /- (Rs.23,369,940/-) being interest received from
 customers and on deposits. Tax deducted at source Rs.3,672,095/-
 (Rs.2,219,806/-)
 
 2 Net loss (gain) on foreign currency transactions on revenue accounts
 recognised in the Profit and Loss Account is Rs.38,943,057/-
 [(Rs.61,235,183/-)].
 
 Basis used to determine the overall expected return:
 
 Life Insurance Corporation (LIC) manages the investments of Employee
 Gratuity Scheme. Expected rate of return on investments is determined
 based on the assessment made by the LIC at the beginning of the year on
 the return expected on its existing portfolio, along with the estimated
 incremental investments to be made during the year. Yield on the
 portfolio is calculated based on a suitable mark-up over the benchmark
 Government securities of similar maturities.
 
 f) Principal actuarial assumptions at the balance sheet date (expressed
 as weighted averages)
 
 1 Discount rate as at 31-03-2011 - 7.8%
 
 2 Expected return on plan assets as at 31-03-2011 - 9.4%
 
 3 Salary growth rate : For Gratuity Scheme - 10%
 
 4 Attrition rate: For gratuity scheme the attrition rate is taken at
 15%
 
 5 The estimates of future salary increases considered in actuarial
 valuation take into account inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 h) General descriptions of defined plans:
 
 1 Gratuity Plan:
 
 The Company operates gratuity plan wherein every employee is entitled
 to the benefit equivalent to fifteen days salary last drawn for each
 completed year of service. The same is payable on termination of
 service or retirement whichever is earlier. The benefit vests after
 five years of continuous service.
 
 2 Companys Pension Plan:
 
 The company operates a Pension Scheme for specified ex-employees
 wherein the beneficiaries are entitled to defined monthly pension.
 
 C Loans and advances in the nature of loans to firms/companies in which
 directors are interested: NIL
 
 D Investment by the loanee (borrower) in the shares of the Company or
 subsidiary of the Company : NIL
 
 Note: Loans to employees including directors under various schemes of
 the company (such as housing loan, furniture loan, education loan etc.)
 have been considered to be outside the purview of this disclosure
 requirements.
 
 c) Contingent liabilities, if any, incurred in relation to interest in
 Joint Ventures N I L
 
 d) Capital commitments, if any, in relation to interest in Joint
 Ventures N I L
 
 Product Warranty
 
 Accruals have been made in respect of warranties given by the Company
 for the sales made and services rendered during the year based on past
 experience.
 
 28.  Stock Option Scheme
 
 a) The grant of options to the employees under the Stock Option Schemes
 is on the basis of their performance and other eligibility criteria.
 The Options are vested over a period of three years subject to the
 discretion of the Management and fulfilment of certain conditions.
 
 b) The maximum term of ESOS is three years from the vesting date. The
 ESOS will be settled in the form of Equity Shares.
 
 29.  As per the information available with the Company till date; none
 of the suppliers have informed the company about their having
 registered themselves under the Micro, Small and Medium Enterprises
 Development Act, 2006. As such, information as required under this
 Act, cannot be compiled and therefore, not disclosed for the year.
 
 30.  The Company has acquired 90% shares in Braybar Pumps (Proprietary)
 Ltd, (Braybar) based in South Africa, on April 29, 2010 through its
 Wholly Owned Subsidiary - Kirloskar Brothers International B. V.,
 Netherlands (KBI BV).  This acquisition has been effected through a
 Special Purpose Vehicle - Micawber 784 (Proprietary) Limited
 (Micawber).
 
 As a result, KBL is the main holding company of KBI BV, which is the
 holding company of Micawber, which is the holding company of Braybar.
 
 31.  In terms of the Scheme of Arrangement and in accordance with the
 Honorable Bombay High Court orders dated April 23, 2010, 7,500 equity
 shares of Rs.2/- each were issued by the Board of Directors on April
 26, 2010 against earlier 10,000 equity shares of Rs. 2/- each, kept in
 abeyance.
 
 Further, in terms of the Employee Stock Option Scheme, Company has
 allotted 7,685 equity shares during the year 2010-11. As a result, the
 present issued and subscribed & paid-up equity share capital of the
 company is at Rs.  158,676,902 consisting of 79,338,451 equity shares
 of Rs. 2/- each.
 
 32.  On August 9, 2010 Company has formed a wholly owned subsidiary
 company namely Kirloskar Systech Ltd., primarily engaged in system
 engineering, designing, and support services.
 
 33.  On December 28, 2010 Company has disposed off its 100% shares of
 the wholly owned subsidiaries namely, Pressmatic Electro Stampings Pvt.
 Ltd. & Quadromatic Engineering Pvt. Ltd. to its other wholly owned
 subsidiary i.e.  Hematic Motors Pvt. Ltd.
 
 Scheme of Amalgamation (Scheme) of Pressmatic Electro Stampings Private
 Limited and Quadromatic Engineering Private Limited (the Transferor
 Companies) with Hematic Motors Private Limited (the Transferee
 Company) and their respective shareholders was approved by the
 Honorable High Court of Judicature at Bombay vide order dated April 8,
 2011. The said scheme is effective from April 25, 2011 however, in
 terms of the scheme it is operative from the Appointed date, January 1,
 2011.
 
 34.  On January 1, 2011 Kirloskar Brothers Ltd. (KBL) has sold the
 shares held in its Wholly Owned Subsidiary, Kirloskar Brothers
 (Thailand) Limited (KBTL) to its other Wholly Owned Subsidiary based in
 the Netherlands, Kirloskar Brothers International B.V (KBI BV).
 However, due to the negative valuation of KBTL shares, KBL has
 transferred the shares at nil value and accounted for the loss on the
 transfer.
 
 35.  Kirloskar Brothers Ltd. (KBL) has during the year contributed
 towards share premium on its initial share holding of 1000 shares of
 Euro 100 each in Kirloskar Brothers International B.V.
 
 Such remittance of money towards Share Premium is an indirect way of
 contribution towards equity, as it adds value to the net worth of the
 Company.
 
 36.  Kirloskar Brothers Limited (KBL) had acquired Kirloskar
 Constructions and Engineers Limited (KCEL) (earlier known as Aban
 Constructions Private Limited) in the F.Y. 2006-07 for a consideration
 of Rs.61.33 Crores.
 
 The reason for acquiring KCEL was due to significant synergies between
 both the companies. KCEL was engaged in the business of construction
 projects such as tunnels, bridges, roads, water and sewerage and other
 industrial plants.
 
 For furtherance of KBLs business interests, KBL has advanced money to
 KCEL from time to time depending on the business requirements and with
 an intention not to hamper the projects being executed by KCEL for KBL
 as well as to fund KCELs own independent projects. The outstanding
 amount in that respect as of end March 2011 stands at Rs.
 674,703,915/-.
 
 However, due to various reasons and in spite of the best efforts to
 revive it, KCEL has suffered huge operational losses and has heavy
 estimated accumulated losses as on March 2011. In the circumstances, no
 recovery of said due amount is possible. Therefore, the management has
 decided to write off this outstanding advance.
 
 37.  The figures have been regrouped / rearranged wherever necessary.
 Figures in bracket relate to previous year.