1.  Contingent liabilities not provided for on account of :
 
 S No  Particulars                      As at 30.06.11    As at 30.06.10
 
 A     Counter guarantees given by the 
       company to banks towards issue
       of B.Gs.                            137,938,758       243,596,495
 
 B     Counter guarantees given by 
       the company to banks towards
       issue of B.Gs to Customs & 
       Central Excise Dept.                  4,200,000         4,039,656
 
 C     Bonds executed to Customs &
       Central Excise Dept. 
      (net of BGs)                          82,300,000        61,180,889
 
 D     Letter of credits issued by 
       bankers                              73,098,452        73,835,440
 
 E     Corporate Guarantees given by
       the company to banks on behalf 
       of subsidiaries & associates        127,000,000       127,000,000
 
       TAX Matters in Appeals
 
 A     Excise Duty                          32,417,443        32,817,443
 
 B     Customs Duty                          1,801,111         1,801,111
 
 C     Service Tax                           5,107,761            --
 
 D     Sales Tax                             5,302,831        3,195,527
 
 
 2.  Loans:
 
 Working Capital Loans:
 
 i) State Bank of India working capital limits are secured by -
 
 Exclusive charge on fixed assets of the Company except those funded by
 UCO Bank, Technology Development Board, National Research Development
 Corporation and Vehicle financing Institutions.
 
 First charge (Hyp) on all current assets of the Company (Second charge
 in favor of Andhra Bank for their BG Limit of Rs.10 Crores).
 
 Second charge on EM of Industrial Plot No.192/B in Survey No.274 at
 Phase II, IDA, Cherlapally along with building (First charge held by
 Srei Equipment Finance Pvt Ltd).  Second charge on fixed assets created
 out of Term loan from UCO Bank.  SBI is further secured by personal
 guarantees of two of the following Directors of the company.
 
 1.  Dr M V Ramana Rao
 
 2.  Mr L N Malleswara Rao
 
 ii) Andhra Bank working capital (non fund based) limits of Rs. 20 crores
 are secured by -
 
 First pari-passu charge on all chargeable current assets of the company
 with SBI & UCO Bank and further secured by 2nd pari-passu charge on
 fixed assets of the company with SBI, UCO Bank and Srei Equipment
 Finance Pvt Ltd.
 
 Andhra Bank is further secured by personal guarantees of two of the
 following directors of the company.
 
 1.  Dr M V Ramana Rao
 
 2.  Mr L N Malleswara Rao
 
 iii) Standard Chartered Bank working capital limits are secured by -
 
 First pari-passu charge on the current assets of the company''s lighting
 business
 
 Second charge on the entire fixed assets of the company in pari-passu
 with other working capital bankers.
 
 Second pari-passu charge on the current assets of the company''s LED
 Display Division.
 
 SCB is further secured by personal guarantee of Dr.M.V.Ramana Rao,
 Managing Director of the Company.
 
 Term Loans:
 
 a) Outstanding Term Loan of Rs.5 Crores (sanction limit of Rs.15 Crores)
 from Technology Development Board is secured by first charge on entire
 fixed assets, present and future, of the company by way of
 hypothecation and mortgage in favour of TDB ranking pari-passu with
 other charge-holders (banks / Fis).
 
 TDB is further secured by personal guarantees of two of the following
 Directors of the company.
 
 1.  Dr M V Ramana Rao
 
 2.  Mr L N Malleswara Rao
 
 b) Term Loan taken from UCO Bank is secured as follows :
 
 Primary : (i) 1st hypothecation charge over the plant and machinery,
 LED Display Boards, software and other fixed assets of the project of
 the company at DMRC.  (ii) 1st Charge on receivables arising out of the
 DMRC Project.
 
 Collateral Security : Second charge on the fixed assets of the company
 other than what has been taken as first charge. The first charge will
 be with SBI.  UCO Bank is further secured by personal guarantee of
 Dr.M.V.Ramana Rao, Managing Director.
 
 c) Term Loan taken from L&T Finance Ltd is secured by 19 Nos. of LED
 Display Screens.
 
 d) Term Loan taken from Srei Equipment Finance Pvt Ltd is secured by
 first charge on the power electronic equipments bought out of the loan
 amount.
 
 e) Loans taken against purchase of vehicles are secured by
 hypothecation of the respective vehicles.
 
 3.  Segment Reporting
 
 Segments have been identified and reported taking into account the
 nature of products, the differing risk and returns, the organization
 structure, and the internal financial report scheme.
 
 The company has identified the following segments as its reportable
 segments :
 
 a) LED Business (Display & Lighting)
 
 b) Info tech & Communications
 
 5.  In accordance with the AS-22 ''Accounting for taxes on Income issued
 by the Institute of Chartered Accountants of India , during the current
 year the company has accounted for the effect of deferred Tax against
 the income pertaining to current year and has accordingly provided for
 deferred tax asset of Rs.7,699,041/- on account of current year''s
 deferred tax.  Deferred Taxation :
 
 4.  Related party Disclosures:
 
 In Accordance with the Accounting standard AS-18  Related Party
 disclosures Issued by the ICAI, the transactions with related parties
 are given below: a.  List of Related Parties with whom transactions
 have taken place and Relationship :
 
 * During the year, the company has disposed off stake in M/s.Infostep
 Inc., USA.
 
 iii) Lease payment recognized in the statement of Profit & Loss Account
 for the year: Rs.66,492,080/- (Previous year- Rs.27,531,000/-)
 
 5.  The company has incurred one time expenditure of Rs.16,361,609/-
 during the Year 2009-10 towards leased assets which is being amortised
 over a period of 5 years lease period. During the year an amount of
 Rs.3,272,320/- (Previous year Rs.1,363,467/-) has been amortised.
 
 6.  The company has written off 1/5th of issue expenses amounting to
 Rs.10,230,941/- during the year (Previous year Rs.10,230,941/-).
 
 7.  Information as required under part II of Schedule VI to the
 Companies Act, 1956.
 
 a) Class of goods manufactured
 
 The list of SSI Undertakings were determined by the Company on the
 basis of the information available with the Company and relied upon by
 the Auditors.
 
 8.  The company has identified Micro and Small enterprises as per
 Micro, Small and Medium Enterprises Development Act 2006.  The
 outstanding for more than 30 days as at 30th June 2011 for the
 enterprises is Rs.27,703,457/-.
 
 9.  Some of the account balances of Sundry Debtors/Creditors, Loans
 and advances are subject to confirmation and/or reconciliation.  17.
 Previous year''s figures are regrouped and reclassified wherever
 necessary to conform to the Current Year''s Presentation/Classification.
 
 10.  Figures have been rounded off to the nearest Rupee.