(Rs.. In ''000''s)
 
 1(a)  CONTINGENT LIABILITIES ETC                    As at      As at
 
                                                31.03.2011 31.03.2010
 
 i) Letter of Credit, Guarantees, Corporate and
 Counter guarantees given on Import and Sale     1,240,929  1,507,553
 contracts etc.
 
 ii) Bills discounted with bank                    261,512    200,425
 
 iii) Central excise and customs authorities 
 have issued notices and raised certain demands,     6,209     12,158
 which are pending in appeal before various 
 authorities, not acknowledged as debt by the
 Company
 
 iv) Sales tax demanded under appeal. The 
 Company has paid an aggregate amount of           212,194    212,544
 Rs.  70,194 against the demand which has been 
 included in Loans & advances under
 schedule H (B).
 
 v) Claims against the Company not acknowledged 
 as debt. The Company has made counter             256,491    241,532
 claim against one of the parties amounting 
 to Rs. 12,944 (Previous year Rs. 12,944 )
 
 vi) The Company had furnished a guarantee for 
 the redemption of preference shares issued         40,560     40,560
 by Kirloskar Investment and Finance Ltd to 
 an extent of Rs. 20,000 (Previous year Rs. 20,000) 
 and had obtained counter guarantee from the
 said Company. The preference shareholder has 
 claimed a sum of Rs. 20,000 along with dividends 
 in arrears of Rs. 20,560 and interest from the
 Company. This claim has been upheld by the 
 Debt Recovery Tribunal (DRT). The Company has 
 preferred an appeal before the Debt Recovery
 Appellate Tribunal to set aside the orders 
 passed by the DRT. The Company does not 
 acknowledge this liability.
 
 vii) Sales tax liabilities in respect of 
 pending assessments, C forms have not been 
 received                                              Not        Not
 from several customers. Continuing efforts 
 are being made to obtain them.              Ascertainable Ascertainable
 
 viii) Interest and penalty if any, on 
 account of delays/defaults in payment of
 statutory/ suppliers                                  Not        Not
 dues not ascertainable. The Company has
 made waiver petition where ever
 such interest /                             Ascertainable Ascertainable
 penalty has been levied.
 
 ix) Sales tax on equipment procured on 
 hire/ lease and on computer software 
 charges is                                            Not         Not
 contested by the suppliers - amount not 
 ascertainable and will be charged to 
 revenue in the                              Ascertainable Ascertainable
 year of final claim.
 
 x) Certain industrial disputes are pending 
 before various judicial authorities - not 
 acknowledged                                   Amount not   Amount not
 by the Company                              ascertainable ascertainable
 
 xi) Arrears of dividend on cumulative 
 preference shares for the period
 from April 1, 2004 to                             107,174       95,643
 March 31, 2011 (as at March 31, 2010 for 
 the period from April 1, 2004 to March 
 31, 2010) (including tax thereon).
 
 xii) Penal damages levied by the Regional 
 Provident Fund commissioner and subject 
 to writ                                             9,154        9,154
 before the High Court of Karnataka, 
 Bangalore. An amount of Rs. 4,618 paid has 
 been included in loans and advances
 
 xiii) Guarantee given to ICICI Bank in 
 consideration of the stand by letter of 
 credit (SBLC)                                     803,125      932,147
 opened by them in favor of ICICI Bank, 
 Canada as security for loan granted issued 
 by them to Kirsons BV. SBLC is secured by 
 mortgage of certain immovable properties 
 of the Company and shares of Kirsons BV.
 
 xiv) Wage settlement of certain units has 
 expired. The Company is under negotiation 
 with the                                             Not           Not
 workers for postponing the effective date 
 of new settlement, due to economic slowdown. ascertained   ascertained
 
 xv) Income tax demands under appeal                9,307          Nil
 
 xvi) Show cause notices raised by the 
 Income Tax Department for short and 
 non remittances of                                 4,599          Nil
 tax deduction at source - matter under 
 examination 
 
 In respect of items above, future cash outflows in respect of
 contingent liabilities is determinable only on receipt of judgments
 pending at various forums/ settlement of matter. The management
 believes that, based on legal advice or internal assessment, the
 outcome of these contingencies will be favorable and that loss is not
 probable. Accordingly, no provisions have been made for the same.
 
 2 (Note 17 of Schedule O of financial statements)
 
 a.  The order of the honorable High court of Karnataka according
 approval for the scheme of arrangement and amalgamation under sections
 391 to 394 of the Companies Act, 1956 (Scheme) was received in
 September 2008 with April 1, 2007 as the appointed date. This scheme of
 arrangement and amalgamation interalia involved transfer of operating
 business of Kirloskar Power Equipment Limited (KPEL) and amalgamation
 of Kaytee Switchgear Limited (KSL) with the Company. The Scheme was
 registered with the Registrar of Companies on October 17, 2008.
 
 b.  Decree in Form 42 of the Companies (Court) Rules, 1949 is yet to be
 passed by the Honorable High Court of Karnataka pending assessment and
 payment of stamp duty. The Company has provisionally accounted for
 stamp duty liability estimated at Rs. 58,922 pending finalization of the
 matter. Further adjustments to the accounts will be made as and when
 correct assessment of stamp duty is made and settled.
 
 c.  The assets & liabilities so transferred to the Company are
 continuing in the name of the respective companies.  Necessary action
 is being taken by the company to obtain the consent/approvals of the
 various regulatory authorities.
 
 3.  (Note 18 of Schedule ''O of financial statements)
 
 The Company has preferred a suit for various claims against Deutsche
 Bank, one of the members of the consortium of bankers for breach of
 trust for withholding of monies belonging to the company and freezing
 sanctioned working capital limits.
 
 4.  (Note 19 of Schedule ''O of financial statements)
 
 a.  Rs. 28,412 (as at March 31, 2010 Rs. 33,015) due from private limited
 companies in which directors are interested.
 
 b.  Rs. 1,833 (as at March 31, 2010 Rs. 6,358) due from a wholly owned
 subsidiary of the Company.
 
 5.  (Note 21 of Schedule O of financial statements)
 
 a.  Confirmation of balances from certain sundry debtors, deposit
 accounts, loans and advances, creditors etc are awaited.  Accounts of
 certain sundry debtors, loans and advances, deposits, collector of
 customs and creditors, are under review and reconciliation. Against
 aggregate debts outstanding as at March 31, 2011 for more than 2 years
 of Rs. 180,346, the Company holds a provision of Rs. 116,533. Adjustments,
 if any will be made on completion of review/reconciliation/
 identification of further doubtful debts. Effect on revenue is not
 expected to be material.
 
 b.  The Company is in process of reconciling the balances of the
 Company, its erstwhile subsidiary KSL and the operating business of
 KPEL. The net difference to the extent identified amounting to Rs. 52,879
 has been included in Loans & Advances.  Necessary rectification entries
 will be accounted after completion of the reconciliation. However,
 according to the management this difference is not likely to materially
 affect the operating results of the Company.
 
 6.  (Note 22 of Schedule O of financial statements)
 
 a.  The Company has implemented SAP ECC 6 systems at certain units
 during the year. Various mistakes and omissions noticed during the year
 have been corrected based on physical inventory taken from time to
 time. Continuing steps are being taken to cleanse data and stabilize
 systems. The effect of unrectified mistakes and omissions is not
 expected to be material.
 
 b.  The Company has initiated steps to bring the valuation of
 inventories in line with Accounting Standard - 2. However, the
 processes followed for determination of cost and net realizable value
 needs to be uniform across units and refined/improved to bring it in
 line with the requirements of the said standard. Continuing steps are
 being taken by the management in this respect.
 
 7.  (Note 23 of Schedule 0 of financial statements)
 
 a.  During the year, the Company has implemented SAP ECC 6 Systems in
 certain units. Inventory at these units as at March 31, 2011 have been
 based on moving weighted average and labor/ overheads absorption
 methods configured in the said system as against other cost basis used
 in the previous year. Effect of such change on the revenue for the year
 is not ascertained.
 
 b.  Depreciation on additions has been calculated on monthly prorate
 basis instead of quarterly basis, in certain units where SAP ECC 6
 system has been implemented. Effect of such change on the revenue for
 the year is not ascertained.
 
 8.  (Note 24 of Schedule O of financial statements)
 
 Assets held for sale has been recognized at realizable value estimated
 by the management. No external valuation or quotations from prospective
 buyers have been obtained.
 
 9.  (Note 25 of Schedule O of financial statements)
 
 a) Current Assets, Loans & Advances include Rs. 23,692 (as at March 31,
 2010 Rs. 22,718) being rescheduled advances from certain other Companies.
 
 b) The above companies have incurred losses and their net worth is
 partially eroded. Having regard to the long term association with these
 companies and their revival plans as communicated to the Company and
 other factors, these debts are considered good of recovery.
 
 10.  Finance Leases: (Note 31 of Schedule 0'' of financial statements)
 
 Finance lease arrangements relate to Plant & Machinery. The lease
 period is for five years with interest rates ranging from 13% to 14%per
 annum. The Company pays fixed lease rentals over the period of the
 lease whereby the net present value of the minimum lease payments
 amount substantially to the cost of the assets.
 
 11.  (Note 32 of Schedule ''O'' of financial statements)
 
 The Company has various operating leases for office facilities,
 guesthouse and residential premises of employees that are renewable on
 a periodic basis, and cancelable at its option. Rental expenses for
 operating leases included in the financial statements for the year are
 t 69,380 (Rs. 71,567).
 
 12.  (Note 36 of Schedule 0'' of financial statements)
 
 The Company has entered into forward contracts outstanding as on March
 31, 2011 for Euro 250,000 to hedge future contractual obligation.
 
 13 Figures have been rounded off to the nearest 000''s as permitted by
 Government of India Notification No.GSR: 14(E) dated December 23, 1978.
 Figures in Schedule ''O'' are in Rs..000''s unless otherwise stated.
 
 26.  Previous year figures have been regrouped wherever required in
 conformity with presentation this year. Figures in brackets represents
 previous year figures.