1.  Contingent Liabilities not provided for in respect of:
 
                                       This year        Previous year
 
                                       (Rs. in lacs)    (Rs. in lacs)
 
 - Guarantees issued by banks 
 on behalf of the company              2,620.49         996.84
 
 - Disputed demands of Excise 
 Duty /Sales Tax/Electricity dues
 /Leaserentals etc.                    2,517.36         2,681.75 
 (Amount paid there against 
 Rs.384.24 lacs (Rs.394.37 lacs))
 
 2.  Estimated amount of contracts
  remaining to be executed on capital
 account and not provided for
 
 (Advances paid there against 
 Rs.7,686.05 lacs (Rs.4,522.83 lacs))
                                       53,399.64        38,992.38
 
 3.  In the opinion of the management, the Current Assets, Loans and
 Advances have a value on realisation in the ordinary course of business
 atleast equal to the amount at which they are stated in the Balance
 Sheet. The provision for depreciation and all known liabilities is
 adequate, neither excess nor short than reasonably necessary.
 
 4.  The Company is in the process of identifying the Suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006. Hence disclosures, if any, relating to amounts
 unpaid as at the year end together with interest paid / payable as
 required under the said Act have not been made.
 
 5.  In terms of the order dated 23rd August 2007 of the Hon''ble Punjab
 & Haryana High Court, the net deferred tax liability computed in terms
 of the Accounting Standard 22 ‘Accounting for Taxes on Income‘
 amounting to Rs. 302.30 lacs has been adjusted against Securities
 Premium Account. Consequently, the profit after tax is higher by the
 said amount.
 
 6.  Advance recoverable in cash or in kind or for value to be received
 include
 
 i) A sum of Rs. 3,161.33 lacs (Rs. 2,386.20 lacs) from group companies
 in which directors are interested. Maximum amount outstanding during
 the year Rs. 5087.95 lacs (Rs. 2,583.93 lacs).
 
 ii) A sum of Rs. 6.20 lacs (Rs. 0.04 lacs) paid to Madanpur (North)
 Coal Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding
 during the year Rs. 6.20 lacs (Rs.0.04 lacs).
 
 iii) A sum of Rs. 84.84 lacs (Rs.Nil) paid to Fatehpur Coal Mining Co.
 Pvt. Ltd., a joint venture Company. Maximum amount outstanding during
 the year Rs.84.84 lacs (Rs.Nil).
 
 7.  Advance income tax is subject to set off with provision for
 corporate tax as and when assessed.
 
 8.  The company has taken certain plant and machinery under operating
 lease prior to the period I st April, 2001.The company is having legal
 disputes with the concerned lessors and there are counter claims which
 are pending under arbitration/court, as such the future liability on
 this account, if any, is not ascertainable.
 
 9.  During the year 27.94,800 equity shares of Rs 10 each were alloted
 as fully paid up pursuant to the conversion of US$ 10.2 mn Foreign
 Currency Convertible Bonds (FCCB) out of the US$ 50 mn FCCB issued by
 the Company in October''2009. During the year 1,00,00,000 equity shares
 of Rs 10 each were alloted on 01.01.2011 as fully paid up pursuant to
 the conversion of 1,00,00,000 Convertible Share Warrents issued on
 04.07.2009. Share capital includes 4,50,000 equity shares issued on
 conversion of term loan and 2,60,22,648 equity shares allotted as Bonus
 shares by capitalisation of Securties Premium Account in earlier years.
 
 10.  Gross Block of Land and Plant & Machinery includes Rs. 2,014.11
 lacs and Rs. 19,823.69 lacs recpectively added on revaluation of assets
 as at 31st March 2005. The depreciation as shown in the Profit & Loss
 Account is net of amount of Rs. 1,278.60 lacs adjusted against the
 Revaluation reserve.
 
 The estimate of rate of escalation is salary considered in actuarial
 valuation, taken into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The above information is as certified by the actuary.
 
 11.  Excise duty relating to sales has been disclosed as a deduction
 from sales. Excise duty related to difference between closing stock and
 opening stock has been disclosed in Schedule 10 – Increase/Decrease in
 stocks.
 
 12. The Company has raised amounts against issue of Foreign Currency
 Convertable Bonds (FCCBs). The outstanding amount of FCCBs as on 31st
 March, 2011 is Rs. 347.55 crore (US$ 77.1 Million) out of which, FCCBs
 of Rs. 79.65 crore (US$ 17.1 Million) and Rs.267.90 crore (US$ 60.0
 Million) will get matured in October, 2014 and April, 2015
 respectively. However, the respective bond holders have an option to
 get their bonds converted into equity shares of the Company or on
 before the maturity date. The amount raised by way of FCCBs has been
 utilised towards Capital expenditure for expansion and modernisation
 plans of the Company. The Company has complied with all the financial
 and other convenants as mentioned in the Offering Circular with respect
 to the issue of FCCBs
 
 The outstanding FCCBs as on 31st March,2011 are repayable in Foreign
 Currency amounting to US$ Mn. 77.1 and same has not been hedged by any
 derivative instrument or otherwise by the Company.
 
 13. Related party disclosure as required by Accounting Standard -18
 issued by the Institute of Chartered Accountants of India are as under
 :- (A) List of related parties and their relationship
 
 a) Enterprise on which key management personnel and/or their relatives
 excercise significant influence with whom transactions have take place
 during the year.
 
 1.  Primenet Global Limited
 
 2.  Surya Roshni Limited
 
 3.  Prakash Natural Resources Limited
 
 4.  Vanshi Farms Private Limited
 
 b) Key Management Personnel :
 
 1.  Shri V.P.Agarwal, Chairman & Managing Director
 
 2.  Shri Vikram Agarwal, Joint Managing Director
 
 3.  Shri G.L.Mohta, Whole Time Director
 
 4.  Shri Vipul Agarwal, Whole Time Director
 
 c) Joint Venture Entities :
 
 1.  Madanpur (North) Coal Co. Pvt. Ltd.
 
 2.  Fatehpur Coal Mining Co. Pvt. Ltd.
 
 14.  Certain balances of Debtors, Advances and Creditors are subject to
 confirmations. In the opinion of the management, no major adjustment
 will be required to be made in the accounts on receipt of these
 confirmations and subsequent to their reconcilations.
 
 15.  Previous year''s figures have been shown in brackets and are
 regrouped/rearranged wherever considered necessary to conform with
 current year''s presentation. The figures have been rounded off to the
 nearest of Rupee.
 
 16.  Schedule 1 to 16 form an integral part of accounts and have been
 duly authenticated.