1.1 The Company has one class of equity shares having a par value of Rs
 10 Per share. Each holder of equity share is entitled to one vote per
 share. The Company declares and pays dividend in Indian Rupees. The
 Dividend is proposed by Board of Directors and is subject to the
 approval of shareholders in the ensuring Annual General Meeting. In the
 event of liquidation of the company, the holder of equity share will be
 entitled to receive remaining assets of the company. The distribution
 shall be in proportion to the number of equity shares held by
 shareholder.
 
 2.1 a) Corporate Loan of Rs 7.50 Cr taken from Bank during 2011 is
 payable in 35 monthly installments of Rs 0.214 Cr
 
 from April, 2011 and carries interest rate @ 14.50% to 16.25%.
 
 b) Term Loan of Rs 7.06 Cr taken from Bank during 2008 to 2010 is
 payable in 48 monthly installments of Rs 0.147 Cr from October, 2010
 and carries interest rate @ 13.50% to 16. 25%.
 
 c) Term Loan of Rs 36.00 Cr taken from Bank during the period April
 2007 to 2009 is payable in 84 monthly installments of Rs 0.43 Cr from
 October, 2010 and carries interest rate @ 13.50% to 16. 25%.
 
 The loans are secured by first Charge on the unencumbered fixed assets
 including immovable property of the company. Further the Loan has been
 guaranteed by personal guarantee of two Promoter Directors of the
 Company
 
 2.2 Interest free Trade Tax Loan is secured by way of Second Charge on
 the Fixed Assets inlcuidng Plant & Machinery situated at A-1/2-2 and
 2-3 , Site B , Surajpur Industrial Area, Distt Gautambudh Nagar, Uttar
 Pradesh. The Deferred Sales Tax due to be paid are as below: on
 31-5-2012-Rs 0.82 Cr , on 31-5-2013-Rs 1.24Cr , on 31-5-2014 - Rs 1.15
 Cr.
 
 2.3 Term Loan of Rs 11.53 Cr from Non Banking Financial Institution was
 taken in January, 2010 , payable in 48 monthly installments of Rs 0.24
 Cr commencing from January, 2011 and carries interest @ 12.25% to
 15.25%.The loan is secured by second charge on Plant & Machinery and
 other assets( Excluding Land & Building) at Plot No 13-14 Roj Ka Meo,
 Sohna , Gurgaon , Haryana.
 
 2.4 The company has taken Vehicles Loan from various banks during
 period 2010 to 2012 . These carries interst rate @ 10% to 12% per
 annum. The loan are secured against hypothetication of Vehicles
 purchased. These Loans are taken for maximum three years and falls due
 for repayment in 2012-13 , 2013-14, 2014-15.
 
 3.1 Working Capital Loan ( Cash Credit Facility) from Bank is secured
 by First Charge on Hypothetication of Stocks and Receivables and
 personal Guarantee of two Directors of the Company . The Cash Credit is
 repayable on demand.The same are also collaterally secured by First
 Charge on the unencumbered Fixed Assets inlcuding immoveable property
 of the Company situated at Sohna, Haryana, Pune, Maharashtra and Gautam
 Budh Nagar, Uttar Pradesh except the immovable property ( Industrial
 Land only) charged to another bank for Loan against Property Facility.
 Further the Loan has been guaranteed by personal guarantee of two
 Promoter Directors of the Company
 
 3.2 Loan against Property taken from Bank is secured by First Charge(
 Equitable Mortgage ) of unencumbered Industrial Land measuring located
 at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat,
 Haryana. Further the Loan has been guaranteed by personal guarantee of
 one Promoter Director the Company.
 
 3.3 Unsecred Loan from Others are includes Inter Corporate Loan,
 repayable on Demand. These carries interest @ 16%per annum. It also
 includes Loan from Liife Insurance Corporation secured against KeyMan
 Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The
 loan carries interest @ 10% per annum.
 
 4.1 Margain Money against letter of credit and Bank Guarantee is kept
 in the form of Bank Fixed Deposit (FDs)discharged in favour of Bank .
 It includes Fixed Deposits, totalling Rs 3,71,94,000 ( Previous Year-
 Rs 145,00,000) the maturity of which is more than 12 months.
 
 5) Contingent Liabilities not provided for : -
 
 a) Letters of credit opened by Bank - Rs 18,91,70,353/- (Previous Year
 Rs. 26,46,43,277/-)
 
 b) Bank guarantees given by the bank on behalf of Company - Rs.
 1,29,85,000/- (Previous year - Rs. 5,85,000/-)
 
 c) Export obligation under EPCG License- Rs 88,62,135/-(Previous Year
 Rs. 1,12,23,060/-)
 
 d) Guarantees given by the Company on behalf of loan of employees-
 Rs.2,37,431 /- (Previous Year Rs. 5,02,123/-)
 
 6 ) Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for Rs 7,25,000 /- (Previous year - Rs.
 13,78,66,050/-)
 
 7) Unclaimed dividend of Rs. 5,98,297/- (Previous Year Rs. 7,96,969/-)
 shown under Current Liabilities does not include any amount due and
 outstanding to be credited to Investor Education and Protection
 Fund.
 
 8) The Company has issued 10,000 3% Foreign Currency Convertible Bonds
 (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs.45.79 Crores
 at issue) on 07th Apr-2006. These Bonds have matured on 8th April, 2009
 and are due for payment. In view of the expiry of contract with
 Bondholders and pending settlement with them, the interest on Bonds for
 the financial years 2009-10 2010-11 and 2011-12 has not been provided.
 However premium on redemption of Bonds for USD 861,000.00 equivalent to
 Rs 4,39,11,000.00 has been accounted for and included in Other Payable
 under Other Current Liabilities
 
 9) The financial effects of changes in Foreign Exchange rates are as
 under-
 
 Net Gains of Rs 904079/- ( Previous Year Net Loss Rs.9,46,209/- ) for
 the year on account of exchange difference related to Exports of Goods,
 Raw Material and Spares purchased, has been included in Operating
 Income . The Exchange Fluctuation on Borrowing has been separately
 disclosed in Note No 26 on Finance Cost.
 
 The company has changed the policy for accounting the exchange
 differences arising on long term foreign currency monetary items in
 accordance with the Companies (Accounting Standards) Amendment Rules on
 AS 11 notified by Government of India on March, 31, 2009. Accordingly,
 the net loss arising from the effect of changes in foreign currency
 rates on foreign currency loans relating to acquisition of depreciable
 capital assets amounting to Rs 535.00 lacs has been added to the cost
 of Assets. The corresponding impact for previous year was Rs 43.86 lacs
 towards the reduction in the cost of Assets due to Net Gains arising
 from the effect of changes in foreign currency.
 
 10) Disclosure pursuant to Accounting Standard-15 (Revised) Employee
 Benefits
 
 Effective 1st April, 2007, the Company has adopted Accounting Standard
 15 (Revised) Employee Benefits issued by ICAI. The Company has
 classified the various benefits provided to employee as under:-
 
 i) Long term compensated absences are provided for based on actuarial
 valuation at the end of each financial year.
 
 ii) Provided Fund is a defined contribution scheme and the same is
 administered through contributions to Regional Provident Fund.
 Contribution to the said Fund paid/payable during the year is
 recognized in the Profit and Loss account
 
 iii) Gratuity liability is defined benefit obligation and is fully
 provided for on the basis of actuarial valuation made at the end of
 each financial year. The actuarial valuation is made on the Projected
 Unit Credit method.
 
 iv) Actuarial gains/losses are immediately recognized and are not
 deferred.
 
 11) Debtors and Creditors Balances are subject to confirmation/
 reconciliations.
 
 12) Investment made in Singur Plant for Tata Motors Ltd (TML) for the
 small car project Nano has been treated as Capital Work in
 Progress. TML has abandoned the project in Singur due to various
 uncontrollable factors. Further, TML has relocated this project to new
 location in Sanand in Gujarat.
 
 The company shall relocate the assets along with apportionment of
 pre-operative expenditure outstanding in accordance with the decision
 of the Board of Directors.
 
 13) Figures of the previous year have been regrouped/recast wherever
 necessary so as to conform to the requirement of Revised Schedule-VI.