31/03/2011    31/03/2010
 
 Contingent liabilities
 
 Claims against Company not acknowledged 
 as debts (primarily relating to performance 
 related claims  filed by customers)               35.831        20.639
 
 Disputed demands in appeal towards income tax, 
 Service tax and                                   39.090         8.704
 sales tax
 
 Guarantee issued in respect of obligations 
 of a subsidiary Unfulfi lled Export Obligations 
 under EPCG scheme to be fulfilled                292.064       313.170
 over 8 years
 
 2. Segment reporting
 
 The Companys activities involve predominantly one business segment
 i.e. Process and Project Engineering, which are considered to be within
 a single business segment since these are subject to similar risks and
 returns. Accordingly, Process and Project Engineering comprise the
 primary basis of segmental information as set out in these financial
 statements, which therefore reflect the information required by AS 17
 - Segment Reporting, with respect to primary segments.
 
 The Company has identified India and Rest of the World as geographical
 segments for secondary segmental reporting. Geographical sales are
 segregated based on the location of the customer who is invoiced or in
 relation to which the sale is otherwise recognised. Assets other than
 receivables used in the Companys business or liabilities contracted
 have not been identified to any of the reportable segments, as these
 are used interchangeably between segments. All assets other than
 receivables are located in India. Similarly, capital expenditure is
 incurred towards fixed assets located in India.
 
 3. Leases
 
 The Company has entered into operating lease arrangements for office
 space, equipments and residential premises for its employees. Certain
 lease arrangements provide for cancellation by either party and also
 contain a clause for renewal of the lease agreement. Lease payments on
 cancellable and non cancellable operating lease arrangements debited to
 the profit and loss account and the future minimum lease payments in
 respect of non-cancellable operating leases are summarised below:
 
 Notes:
 
 1 Deposits with banks having maturity of more than three months
 aggregating to Rs. 860.115 (2010: 1093.515) are not readily liquid and
 have been excluded from cash and cash equivalents.
 
 2 Cash and cash equivalents include bank balances in relation to
 unclaimed dividends Rs. 5.257 (2010: 6.201).
 
 4.0 Quantitative information of foreign exchange instruments
 outstanding as at the Balance Sheet date
 
 The foreign currency forward contracts outstanding as at the Balance
 sheet date aggregate USD 20.850 millions and GBP Nil (2010: USD 1.750
 millions, GBP Nil).
 
 5. Employee benefits
 
 a) Defined contribution plans
 
 The Company has recognised Rs. 27.882 towards post employment defi ned
 contribution plans comprising of provident and superannuation fund in
 the profit and loss account.
 
 b) Defined benefitplan
 
 In accordance with the Payment of Gratuity Act, 1972, the Company is
 required to provide post employment benefi t to its employees in the
 form of gratuity. The Company has maintained a fund with the Life
 Insurance Corporation of India to meet its gratuity obligations.  In
 accordance with the Standard, the disclosures relating to the Companys
 gratuity plan are provided below:
 
 Notes:
 
 1.  Expected rate of return on plan assets is based on actuarial
 expectation of the average long-term rate of return expected on
 investments of the fund during the estimated term of the obligations.
 
 2.  The estimates of future salary increases considered takes into
 account the infl ation, seniority, promotion and other relevant factors
 on long-term basis.
 
 6.0 Employee stock options
 
 The Compensation Committee of the Company established the Employee
 Stock Option Plan on 23rd July, 2005. Employees covered by the Plan are
 granted an option to purchase shares of the Company subject to the
 requirements of vesting. Total of 8,100,265 (including impact of bonus)
 stock options were approved in the Annual General Meeting of the
 Company held on 23rd July, 2005, of which the employees have been
 granted 2,759,139 stock options on 12th October, 2005 (Grant I),
 2,311,500 stock options on 28th December, 2006 (Grant II) and
 3,029,626 stock options on 9th July, 2009 (Grant III) with a vesting
 period of 3 years. Stock options under Grant II lapsed on 28th
 December, 2010. In the Meeting of the Compensation and Share Allotment
 Committee held on 16th November, 2010 it was decided to utilise the
 surrendered and lapsed options out of Grant II to grant them to new CEO
 & MD in terms of his appointment letter and also to senior executives
 of the Company at the relevant market price as Grant IV. The total
 options granted under Grant IV are 1,950,000 options out of which
 1,250,000 options(Plan A) were granted to CEO & MD with vesting period
 of 5 years and 700,000 options (Plan B) were granted to Senior
 Executives of the Company with vesting period of 2 years.
 
 The stock options vest in a graded manner equally over the period of
 vesting, each vesting taking effect as per the terms of the grant. The
 stock options granted are exercisable at 100% of the fair market value
 of the underlying equity shares of the Company as on the date of grant.
 
 7.0 Insurance Claim
 
 On 16th May, 2011 the Company has received in-principle proposal for
 project related claim from Insurance Company. The Company has
 recognised Rs. 59.413 as claim receivable from insurer as of 31st March,
 2011.
 
 7.1 Taxes
 
 The Company has not recognised MAT credit entitlement to the extent of
 Rs. 41.145 in respect of Income Tax paid in view of uncertainty of its
 utilisation for payment of tax in foreseeable future.
 
 7.2 Provision for diminution
 
 Investment in Subsidiary viz. Praj Jaragua Bioenergia S.A., of Rs. 72.029
 has been fully provided for during the year in view of continuing
 losses and complete erosion in its net worth.
 
 7.3 Major Events
 
 - During the year, flash floods at the Head office of the Company
 caused damage to certain assets in the building for which claim was
 lodged with the insurer for losses incurred. The carrying value of
 assets lost / damaged Rs. 0.517 is charged to profit and Loss Account
 (net of insurance claim received Rs. 12.947).
 
 - During the year the Company discontinued its activities of the Export
 Oriented Unit at Alandi in Pune. The inventories lying at EOU were
 debonded after payment of duty & the same was transferred to
 manufacturing facility at Sanaswadi Pune.
 
 7.4 Prior year comparatives
 
 Previous years figures have been regrouped / reclassified to conform
 to the current years presentation.