A.                                           (Rs. in Lacs)
 
 1.  Contingent liabilities not provided for in the accounts :-
 
 a) Bank guarantees and Letter of credits *   2982.00    (3070.79)
 
 b) Claims against company, not acknowledged as debts,
 
 -by Sales Tax authorities**                    14.85       (5.04)
 
 -by Excise & Custom authorities                30.20      (31.90)
 
 -by other parties                              38.84      (38.82)
 
 c) Court cases                                200.58      (83.07)
 
 d) PSEB Demand ***                             27.96      (27.96)
 
 e) Interest on Employees Security 
    deposits payable                             0.65       (0.93)
 after completion of 5 years of service
 
 *Includes expired guarantees for Rs. 61.03 Lacs (21.86 lacs) against
 which neither any claims have been lodged nor reversed by issuing banks
 pending returning of original guarantee by beneficiary.
 
 ** The Company has filed appeal which has been admitted by the
 competent authority.
 
 *** Company received a Demand Notice from PSEB Mohali which is being
 contested through the Lessee as per Lease Agreement.
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account Nil (Nil).
 
 3.  The company has transferred unpaid dividend amounting to Rs. Nil Lacs
 (5.72 Lacs) to Investor Education & Protection Fund during the year as
 per section 205C of Company Act. 1956.
 
 4.  In the opinion of the Board of directors, the current assets and
 loans and advances have a value on realisation at least equal to the
 value stated in the foregoing balance sheet. Adequate provision has
 been made for all known liabilities and is not in excess of the amount
 considered reasonably necessary.
 
 5.  Loans and Advances includes amount due from Directors at the year
 end Rs. Nil (Nil) and maximum amount outstanding at any time during the
 year from Directors was Rs. Nil lacs (Rs. Nil lacs) .
 
 6.  Punjab Digital Industrial Systems Ltd (PDISL), the fully-owned
 subsidiary, has been ordered to be wound up by the Hon''ble Punjab &
 Haryana High Court vide their order dated 20/02/2009. The Company has
 filed its statement of affairs with the Official Liquidator appointed
 by the said court.  The loss on account of permanent diminution in
 investment in equity shares of Rs.24.79 lacs in PDISL has been provided
 for. Full provision amounting to Rs. 40.35 lacs against amount
 recoverable of Rs. 40.35 lacs (Rs.40.35 lacs) and Rs. 4.55 Lacs against
 balance appearing in Sundry Debtors at Rs. 4.55 lacs (Rs. 4.55 lacs) has
 also been made.
 
 7.  The Board of Directors of the company at their 81st meeting held on
 29.01.1997 decided to bear all statutory expenditure in respect of its
 subsidiary company namely PCL Telecom Ltd, which presently is under
 winding up process.
 
 8.  The company had sent balance confirmation letters to all parties
 requesting them to confirm the balance within 15 days, failing which
 the balance will be presumed to be correct. The company has no other
 means of confirming the balances for which no response has been
 received except presuming them to be correct as per the terms of the
 letter.
 
 9.  Previous year''s figures have been regrouped, rearranged and
 recasted, wherever thought necessary, in order to make them look
 comparable with the current year''s figures.
 
 10.  Sales includes goods despatched amounting to Rs. 104.69 lacs (Rs.27.79
 lacs) in respect of which the customer has taken delivery in the next
 accounting year and acknowledged accordingly.
 
 11.  The details of dues of small scale industries to whom the company
 owes any sum for more than 30 days are Rs. 1035/- to M/s Alfa
 Electronics, Pune; Rs. 15317/- to M/s Fastners and industrial
 Corporation, Bangalore; Rs. 2447/- to M/s Oswin Industries, Panchkula; Rs.
 44657/- to M/s Techno Crafts Mohali; Rs. 5267/- to M/s Goyal Enterprises,
 Chandigarh; Rs. 4558/- to M/s New Age Metal, Mohali; Rs. 5586/- to M/s
 Hindustan Enterprises, Allahabad; Rs. 2442/- to M/s Paramount
 Electronics, Bangalore; Rs.100/- to M/s Elite Industries Mohali; and Rs.
 880/- to M/s Progressive Engg.  Works Mohali.
 
 12. The company had invested Rs. 700 lacs in the Bonds of UP Co-operative
 Spinning Mills Ltd (UPCSMFL) duly guaranteed by the UP State Govt. for
 a tenure of 18 months. The company invoked the government guarantee
 consequent to the bonds not being redeemed on the due date of
 redemption viz 20.12.1999. The suit was filed for recovery of Rs. 993.44
 lacs (Principal of Rs. 700 lacs and Interest of Rs. 293.44 lacs.) The
 company had recognised income to the extent of Rs. 156.45 lacs (@ 14.90%
 on Principal for a period of 18 months. The suit has been decided
 ex-parte in favour of the company on 31.01.2004. The U.P State
 Government (Guarantor) has deposited Rs. 735.63 lacs and a Govt.
 guarantee of equivalent amount in the Civil Court, Lucknow in
 compliance of the orders of the Hon''ble Punjab and Haryana High Court,
 Chandigarh. The matter is subjudice and the Company has not recognized
 the accrued interest amounting to Rs.968.43 lacs up to 12.07.2005 viz.
 the date of deposit of Rs. 735.63 lacs by the U.P. Govt., and for the
 period subsequent thereto, keeping in view the uncertainty involved in
 the matter of realization of interest. This is in conformity with the
 Accounting Standard 9-Revenue Recognition issued by the Institute of
 Chartered Accountant of India.
 
 Further an amount of Rs. 735.63 lacs deposited with the Executing Court
 has been released to the Company (decree holder) on 24.04.2006 against
 furnishing bank guarantee of the equivalent amount.
 
 13.  Outstandings from subsidiary have been separately disclosed in the
 respective schedules to the Balance Sheet.
 
 14.  The provision against excise demand Rs. 251.67 lacs (Rs. 268.94 lacs)
 consisting of excise duty Rs. 64.50 lacs (Rs. 64.50 lacs), penalty of Rs.
 64.50 lacs (Rs. 64.50 lacs) and interest upto the year Rs. 132.67 lacs (Rs.
 149.94 lacs) has been made consequent to the decision of Commissioner
 of Central Excise on withdrawal of the modvat credit relating to
 earlier years. The company is contesting the demand with the Central
 Excise Tribunal. Rs. 10 Lacs has already been paid as duty under protest.
 Excess interest provided in previous years has been adjusted in current
 year.
 
 15.  The company has provided for Rs. 8.00 lacs (Rs. Nil lacs) and Rs. 27.31
 lacs (Rs. 15.75 lacs) after review of non-moving items in respect of
 obsolete and slow moving inventories of Raw material and Finished Sub
 Assemblies respectively after studying the future requirement. An
 amount of Rs. 0.46 lacs (Rs. 0.47 lacs provided for) in respect of doubtful
 debts and advances has been written back during the year. The provision
 remaining as on 31 march 2011 is considered adequate.
 
 16.  The company has been giving performance guarantees against
 equipments supplied to various customers and has not incurred any
 material expenditure on replacement of any part or equipment except for
 expenditure on traveling of service engineers which is accounted for as
 and when incurred. Keeping in view the past pattern and the concept of
 materiality, no provision has been created or disclosure has been made,
 except contingent liabilities already disclosed at Note 1. This is in
 keeping with the requirments of AS 29 Provisions, Contingent
 Liablities and Contingent Assets issued by the Institute of Chartered
 Accountants of India.
 
 17.  There are some current liabilities that have been outstanding for
 more than three years and for which the concerned parties have not
 filed claims with the company for payment.
 
 18.  In the absence of convincing evidence regarding there being
 sufficient taxable income under the normal provisions of the Income Tax
 Act, 1961 within the period specified under section 115JAA of the said
 Act, the Minimum Alternate Tax paid in the year under audit and earlier
 years has not been recognized as an asset. This is in keeping with the
 Guidance Note issued by the Institute of Chartered Accountants of India
 on the matter.
 
 Additional information/quantitative details pursuant to paragraphs 3
 and 4 of part II Schedule VI of the Companies Act 1956.