1.  During the previous year, the Company had extended its financial
 year to eighteen months to end on September 30, 2009. The Current
 financial year is for 12 months ended September 30, 2010.
 
 2.  On April 29, 2010, the Board of Directors approved the transfer of
 Traction Electronics, SCADA and Industrial Drives businesses
 (sub-divisions of Automation and Control segment) (together referred to
 as Businesses) to Crompton Greaves Limited (CGL). The transfer is
 consistent with the Companys long-term strategy to focus on building
 its position in Strategic Electronics and Network Systems (Tatanet) and
 to pursue further synergistic opportunities in related areas.
 
 On July 28, 2010 (being the Closing date), the Company transferred
 these Businesses as a going concern to CGL on a slump sale basis for
 a total consideration of Rs. 8,100 lakhs. Additional Rs. 1,100 lakhs
 has not been received as the financial parameters to be met by
 September 30, 2010 were not achieved by the company.
 
 3.  However, at the request of Crompton Greaves Limited, the company
 has continued with certain operations of the transferred businesses,
 pending assignment of certain contracts by customers to CGL.
 Consequently Sales, Income from Service rendered, Raw material consumed
 and sub-contracting expenses in respect of these contracts during the
 period July 28,2010 to September 30,2010 have been included under the
 respective head in these financial statements.
 
  Particulars                                Rupees (000)
 
 Sales                                              39,513
 
 Income from Service rendered                        7,164
 
 Raw Material Consumed                              39,128
 
 Sub-contracting expenses                            7,164
 
 
 
 4.  Consequent to the reasons stated in note 2, 3 and 4 above, figures
 for current year are not comparable with previous period.
 
 * Represents payments of Rs.275 (000) (Previous Year: Rs. 1,385)
 (excluding service tax) for taxation matters to an affiliated firm in
 view of the networking arrangement which is registered with Institute
 of Chartered Accountants of India.
 
 5.  Sundry Debtors includes Rs. 383,677 (000) (Previous Year: Rs.
 749,283 (000)), which in accordance with the terms of the contracts,
 were not due for payments as at 30th September, 2010 (30th September,
 2009).
 
 6.  The tax year for the company being the year ending 31st March, the
 provision for taxation for the period is the aggregate of the provision
 made for the six months ended 31st March, 2010 and the provision based
 on the figures for the remaining six months up to 30th September, 2010,
 the ultimate tax liability of which will be determined on the basis of
 the figures for the period 1st April, 2010 to 31st March, 2011.
 
 II.  Defined Benefit Plan
 
 a) Provident Fund
 
 The company makes monthly contributions to Provident Fund managed by a
 trust administered by the company for qualifying employees. Under the
 schemes, the company is required to contribute a specified percentage
 of the payroll costs to fund the benefits. During the year the company
 has contributed Rs. 9,167 (000) (Previous Year: Rs. 13,466 (000)) to
 the Provident Fund Trust.
 
 In keeping with the Guidance on implementation of Accounting Standard
 (AS) 15 (Revised) on Employees Benefits notified by the Companies
 (Accounting Standards) Rules, 2006, employer established provident fund
 trust are treated as Defined Benefit Plans, since the company is
 obligated to meet interest shortfall, if any, with respect to covered
 employees. According to the Management, the Actuary has opined that
 actuarial valuation cannot be applied to reliably measure provident
 fund liabilities in the absence of guidance from the Actuarial Society
 of India. Accordingly, the company is currently not in position to
 provide other related disclosures as required by the aforesaid AS-15
 read with the Accounting Standards Board Guidance. Having regard to the
 assets of the fund and the return on investments, the entity does not
 expect any deficiency in the foreseeable future. Accordingly, no
 provision is required towards the guarantee given for notified interest
 rates.
 
 III.  Long Term Employee Benefit - Compensated Absences
 
 Provision for Compensated Absences has been made on the basis of
 actuarial valuation report as at the Balance Sheet date. The charge for
 the year of Rs. 4,713 (000) (Previous Year: Rs. 7,857 (000)) has been
 made in the Profit and Loss Account.
 
 7.  (a) The aggregate lease rentals in respect of operating leases for
 the period charged as Lease Rentals in the Profit and Loss Account
 aggregate to Rs. 10,421 (000) (Previous Year: Rs. 6,048 (000)).
 
 (b) In respect of equipments given on operating leases, no refundable
 deposits are taken and the lease rentals recognised in the Profit and
 Loss Account for the period included under Income from Services
 Rendered under Income from Operations aggregate to Rs.29,386 (000)
 (Previous Year: Rs. 40,642 (000)).
 
 8.  Provision for Warranty
 
 Provision for Warranty relates to warranty provision made in respect of
 sale of certain products, the estimated cost of which is accrued at the
 time of sale. The products are generally covered under free warranty
 period ranging from one to three years.
 
 9. Additional information pursuant to the Provisions of Paragraphs
 3(i)(a) and (ii), 4C and 4D, of Part II of Schedule VI to the Companies
 Act, 1956.
 
 10.  Related Party Disclosure:
 
 I.  Holding company         - The Tata Power Company Limited
 
 II.  Related Parties 
      where control exists
 
 a.  Subsidiary              - Tatanet Services Limited
 
 III.  Other parties with whom transactions have taken place during the
 year
 
 a.  Fellow Subsidiary       - Af-taab Investment Company Limited
 
 b.  Associate               - Nelito Systems Limited
 
 IV.  Key Management Personnel
 
 a.  Executive Directors     - Mr. K . A. Mahashur
 
 Mr. Z. J. Engineer (Retired on July 29, 2010)
 
 11.  Previous years figures have been regrouped wherever necessary.