1 Investment in Wardha Power Company Limited entitles the Company to
 obtain energy equivalent of 5MW from the Group Captive Power Plant.
 
 These shares will receive restrictive dividend not more than 0.01% of
 the face value of the equity shares
 
 The preference shares carry a coupon rate of 0.01% per annum of the
 face value and is redeemable on expiry of 25 years.
 
 This investment would be amortised over a period of 25 years from the
 year in which the supply of power starts.
 
 2 The Company''s subsidiary, Stokes Group Limited, UK had incurred
 losses and the net worth of the said subsidiary company had eroded
 during the previous years. Accordingly during the previous years, the
 Company had recognised provision for diminution in the value of the
 investment of Rs 9018.59 Lakh representing 100% of the value of the
 investment.
 
 The above figures are excluding charge for provision for leave
 encashment on separation and gratuity payable provided on actuarial
 basis.
 
 The Company has received, an approval from the Central Government for
 the Managerial Remuneration till 31st August, 2012.
 
 The appointment of Mr. K.Ramaswami is subject to the approval of the
 shareholders at the ensuing Annual General Meeting.
 
 3 Micro & Small enterprises
 
 The identification of suppliers as micro and small enterprises covered
 under the ''Micro small and medium enterprises development act 2006''
 was done on the basis of the information to the extent provided by the
 supplier to the Company.  Total outstanding dues to micro and small
 enterprises, which were outstanding for more than stipulated period are
 given below:
 
 4 Contingent Liabilities
 
                                                             (Rs In Lakhs)
 
 Particulars                       As at                As at
                                   March 31,2012        March 31, 2011
 
 Claims against the company 
 not acknowledged as debts
 
 i)Income Tax claims against 
 which company has preferred 
 an appeal.
 
 a)Non deduction of TDS and 
 interest thereon                  29.89                   29.89
 
 b)   Disallowance of 
 certain expenses                  613.68                  469.06
 
 ii)  Excise cases against the 
 company, appealed by the 
 company with CESTAT
 
 a)   Relating to cenvat 
 availed on rejected goods         89.28                   89.28
 
 b)   Interest on 
 supplementary invoices            9.59                    9.59
 
 iii) Bill discounting facilities
 availed under Bill Marketing 
 Scheme from customers             583.56                  1,225.53
 
 iv)  The Company had imported 
 capital goods under the Export
 Promotion Capital                 10,266.75               10,172.80
 Goods (EPCG) scheme, of the 
 Government of India, at 
 concessional rates of
 duty on an understanding 
 to fulfill quantified exports 
 against future obligation
 aggregates to USD 200.84 Lakhs
 (P.Y.USD 227.63 Lakhs) 
 converted at year
 end exchange rate
 
 v)Estimated value of contracts 
 remaining to be executed 
 on capital account (net           544.42                  1,082.34
 of advances) and not provided for
 
 vi)  Claim for interest by a 
 financial institutions on a 
 loan which was interest free           -                  164.93
 loan
 
 
 1.  During the year, the Company received subscription of Rs 4,417.50
 lakhs representing the balance 75% of 42,99,270 warrants issued @ Rs 137
 per warrant to the promoter Mahindra & Mahindra Limited. The said
 warrants were converted into 42,99,270 equity shares of Rs 10 each with
 a share premium of Rs 127 per equity share.
 
 2.  Employees'' Stock Option Scheme (ESOS) was formulated by the
 Remuneration/Compensation committee of directors of the Company and
 approved by it on 26th October, 2007. This was subject to the authority
 vested in it by the shareholders at the general meeting of the company
 held on 25th July, 2007 in accordance with the Securities and Exchange
 Board of India (Employees Stock Option Scheme and Employees Stock
 Purchase Scheme) Guidelines, 1999. Under this scheme, options entitled
 to one equity share of Rs 10/ - each fully paid up were granted as
 follows:-
 
 i 2,96,000 options to the employees of the company at a fixed price of
 Rs 197.00 per share on 26th October, 2007.
 
 ii 3,91,000 options to the employees of the holding company (M&M) at a
 fixed price of Rs 83 per share on 26th February, 2008
 
 iii 88,000 and 12,000 options to the directors of the company at a
 fixed price ofRs 197.00 per share on 26th October, 2007 and 26th
 February, 2008 respectively.
 
 iv 2,50,000 options to the employees of Foreign subsidiaries at a fixed
 price of Rs 151.80 per share on 9th May, 2008.
 
 v 2,45,000 options to the employees of Foreign subsidiaries at a fixed
 price ofRs 102.00 per share on 29th July, 2008.
 
 vi 5,00,000 options to the employees of the company at a fixed price of
 Rs 109.00 per share on 26th August, 2008.
 
 vii 93,000 options to the employees of the company at fixed price of Rs
 97.06 per share on 12th May, 2010.
 
 viii 20,00,000 options to the employees of the company at fixed price
 of Rs 57.00 per share on 1st April, 2011
 
 ix 5,89,883 options to the employees of the company at fixed price of Rs
 44.00 per share on 20th January, 2012
 
 a.  The equity settled options vest one year from the date of the grant
 and are exercisable on specified dates in 4 tranches within a period of
 5 years from the date of vesting. The number of options exercisable in
 each trance is between the minimum of 100 options and maximum of the
 options vested, except in case of the last date of exercise, where the
 employee can exercise all the options vested but not exercised till
 that date.
 
 Options granted, vest in 4 equal installments on the expiry of 12
 months, 24 months, 36 months and 48 months respectively.
 
 c.  The Company has adopted the intrinsic value method of accounting
 for determining compensation cost for its stock based compensation
 plan. Consequently, salaries, wages, bonus, etc. includes Rs 133.86
 Lakhs (Previous Year: Rs  81.33 Lakhs) being the amortization of
 deferred employee compensation, after adjusting for reversals on
 account of options lapsed.
 
 Had the company adopted Fair Value Method in respect of Options
 granted, the employee compensation cost would have been lower by Rs
 120.76 Lakhs (Previous Year Rs 49.40 lakhs), Profit after tax higher by
 Rs 120.76 Lakhs (Previous Year Rs 49.40 lakhs), and the basic and diluted
 earnings per share would have been higher by Rs 0.14 (Previous Year Rs
 (0.05).
 
 d.  In respect of options granted during the period, accounting value
 of options (equal to intrinsic value) was treated as form of employee
 compensation, to be amortised on a straight line basis over the vesting
 period. Unamortized portion was disclosed under the head Employee Stock
 Options outstanding in Schedule II as deferred employee compensation
 expenses.
 
 1.  In terms of Accounting Standard - 17 (Segment Reporting) issued by
 the Institute of Chartered Accountants of India, the Company operates
 in only one segment i.e. Forgings.
 
 2.  Exceptional items represents Rs 155.89 Lakhs interest pertaining to
 previous period paid on settlement of liability relating to a
 borrowing.
 
 3.  Other expenses include Rs 118.41 Lakhs against the impairment of con
 rod machines which was part of capital-work-in- progress.
 
 4.  Provision for tax is not made in view of brought forward book
 losses / unabsorbed depreciation.
 
 5.  The Revised Schedule VI has become effective from 1 April, 2011 for
 the preparation of financial statements. This has significantly
 impacted the disclosure and presentation made in the financial
 statements. Previous year''s figures have been regrouped / reclassified
 wherever necessary to correspond with the current year''s
 classification / disclosure.