1.  Contingent Liabilities
 
 a) Estimated amount of contracts remaining to be executed on capital
 accounts and not provided for - Nil (Previous year Nil).
 
 b) On account of delayed/non - compliance or in dispute with various
 statutes are (i) Sales Tax Rs. 1.63 Lacs (Previous Year Rs.1.63 Lacs)
 (ii) Income Tax Rs. 608.43 Lacs (Previous Year Rs.608.43 Lacs) and
 (iii) Provident Fund Rs. 7.73 Lacs (Previous year - Rs. 7.73 Lacs).
 
 2.  The Preference Shares issued in earlier years amounting to
 Rs.590.00 Lacs were liable to be redeemed three years after their
 respective issue dates, ranging from 13th September 1998 to 27th March
 2000 and remained overdue for redemption during the current year.
 
 3.  The balances appearing under Unsecured Loan certain sundry debtors,
 loans and advances, deposits and current liabilities are subject to
 confirmations and/ or reconciliations.
 
 4.  The Company was to transfer certain assets and all liabilities of
 wind energy division as a going concern to M/S. Southern Wind Farm
 Limited as on 1st May 2006 as per the slump sale agreement dated
 16-01-2006. The Company transferred certain assets and all liabilities
 of wind energy division and accounted accordingly in the books as on
 1st May 2006. Dispute arose due to Non fulfillment of all the
 obligations and non payment of consideration by the other party. The
 transactions could not be completed and the matter is referred to
 arbitration.
 
 Since this slump sale is not complete the gain/loss due to transfer of
 assets and liabilities was not accounted in the profit and loss account
 during the period ended 31st December, 2006 and thereafter.
 
 5.  Physical verification of the fixed assets is carried on by the
 management in a phased program covering all the assets and the said
 assets have been certified by the Management.
 
 6.  Permanent diminution/erosion, if any, in the book value of quoted
 Investments has not been considered in the accounts, since the said
 investments are of long term in nature.
 
 6.1 On account of nil commercial operation taking place in the joint
 venture Turkestanenergo NEPC, the Company is not in a position to
 comply with the disclosure requirements as stipulated in para 54 of the
 Accounting Standard 27 - Financial Reporting of Interests in Joint
 Ventures issued by the Institute of Chartered Accountants of India.
 
 7.  Loans and Advances include one of the related parties in which the
 directors are interested
 
 which are purely in the nature of business advances, with maximum
 balance during the year of Rs. 31,19,89,895/- and closing balance of
 Rs. 31,19,89,895/-
 
 8.  During the year, the Company has not complied with the provisions
 as prescribed by Accounting Standard 28 - Impairment of Assets issued
 by the Institute of Chartered Accountants of India and has not
 recognised any impairment in the value of assets pertaining to Airline
 Division, though conditions exist for the impairment of the same. The
 amount of such non recognition is presently unascertainable.
 
 9.  Amounts due to Small Scale Industrial undertakings under Current
 Liabilities, based on the information available with the Company and
 relied upon by the auditors- Nil (Previous year- Nil).
 
 10.  The Company has not made provision for Retirement Benefits as
 prescribed under Accounting Standard 15 - Accounting for Retirement
 Benefits in the Financial Statements of Employers issued by the
 Institute of Chartered Accountants of India.
 
 11 Current Taxation:
 
 No provision towards current taxation has been made in view of the
 accumulated carried forward losses during the current financial year.
 
 11.1 Deferred Taxation:
 
 The Company has not provided for Deferred Tax Assets that may be
 created on account of Timing Differences that may arise due to
 disallowances of certain expenses under the Income Tax Act 1961. The
 provision was not considered since future year operations results and
 consequently adjustment of tax provision are not certain
 
 12.  Segment Reporting:
 
 The operations of the Company are in essence concentrated in a
 particular geographical area and in a particular product/service only.
 Hence, Segment Reporting as prescribed by the Accounting Standard 17 -
 Segment Reporting issued by the Institute of Chartered Accountants of
 India is not applicable.
 
 13.  Related Party Disclosure:
 
 In pursuance of Accounting Standard 18 pertaining to Related Party
 Disclosure issued by The Institute of Chartered Accountants of India
 and based on available information, the disclosure are as under:
 
 14. a) List of Related Parties and Relationships:
 
 Nature of Relation                     Name of Party
 
 1. Associates                          NEPC Agro Foods Ltd.
                                        National Wind Power 
                                        Corporation Ltd.
                                        NEPC Textiles Ltd.
 
 2. Enterprises over which 
    Directors have                      Al Merchant Export
                                        (Partner ship firm)
    significant influence               Tamilnadu Bluemetal
                                        (Partner ship firm)
 
 3. Subsidiaries and Fellow 
    Subsidiaries                        None
 
 4. Joint Venture                       Turkestanenergo NEPC
 
 5. Key Management Personnel            Mr. Ravi Prakash-Chairman
 
                                        Mr. Raj Kumar-Wholetime director
                                        Mr. Tirupathi Kumar-Managing 
                                        Director
 
 6. Relatives of Key Management 
    Personnel                           Mrs.Champa Devi 
                                        (wife of Chairman)
                                        Mrs. Ritu Devi (wife of 
                                        wholetime Director)
                                        Mrs. Shivani Devi (Wife of 
                                        Managing Director)
 
 c) Remuneration paid to key management personnel-Rs. Nil (Previous
 Year - Nil)
 
 17. Details pursuant to Paragraphs 3 and 4 of Part II of Schedule-VI to
 the Companies Act, 1956:
 
 18.  Previous year figures have been regrouped, rearranged and
 reclassified wherever considered necessary.