1.01 Security:
 
 Working Capital facilities:
 
 Working capital facilities with Consortium Banks (fund based and non
 fund based) aggregating to Rs.4,500,000,000 (previous year
 Rs.4,500,000,000) are secured by first charge by way of hypothecation
 on the current assets, both present and future, in favour of IDBI
 Trusteeship Services Limited as Security Trustees, for the benefit of
 consortium banks.
 
 1.02 Warrants:
 
 The holders of 64,782,765 warrants are entitled to apply for one equity
 share of Rs. 5 each per warrant at a premium of Rs. 30 at any time
 within the warrant exercise period i.e., between 13th March, 2008 to
 13th March, 2013. The Company will also have one time call option of
 compulsory conversion of warrants at any time within the warrant
 exercise period.
 
 From the commencement of warrant exercise period (ie. 13th March 2008)
 till 31st March, 2011, the Company has received applications from
 warrant holders for conversion of 302,916 warrants into equity shares
 for an amount aggregating to Rs. 1,06,02,060 (inclusive of securities
 premium) and have been converted into equity shares (equity share
 capital Rs. 1,514,580 and securities premium Rs. 9,087,480) till 31st
 March, 2011
 
 2.01 Interest paid on others Rs. 34,490,799 (Previous year Rs.
 44,851,743) is net-off Rs. 4,464,666 (Previous Year Rs. 731,640) being
 interest received from customers/ suppliers/ contractors. [Tax deducted
 at source on interest received is Rs. Nil (Previous Year Rs. Nil)].
 
 2.02 Segment Information : The Company operates in one segment namely
 Iron castings.
 
 * Includes 5,891 MT for internal consumption (previous year 5,219 MT)
 
 Note:
 
 Castings turnover has been arrived after considering the rejections of
 2,784 MT amounting to Rs.174,177,981 (Previous Year 3,277 MT amounting
 to Rs. 192,111,931)
 
 2.03. Related Party Disclosures :
 
 a) Associate Company : Kirloskar Industries Limited
 
 b) Key Management Personnel : Mr. R.V.Gumaste - Managing Director
 
 2.04 Disclosure pursuant to Accounting Standard 15 (Revised) Employee
 Benefits :
 
 The Provident Fund contributions are remitted to the Regional Provident
 Fund Commissioner.
 
 The Contribution on account of Superannuation is remitted to Life
 Insurance Corporation of India, who manages the Superannuation Fund.
 
 2.05 Previous years figures have been regrouped wherever considered
 necessary to make them comparable with those of the current year.