1 Contingent Liabilities
 
 a) Claims against the Company not acknowledged as debts – Rs.79.60
 Lakhs (previous year Rs.75.60 Lakhs).
 
 b) Guarantees issued by Company''s bankers on behalf of the Company for
 performance of contractual obligations, or as security deposits, or as
 a condition of tender bids made by the Company, aggregate to Rs.324
 Lakhs (previous year Rs.197 Lakhs). Some of them are covered by margins
 in the form of fixed deposits Rs.22 Lakhs (previous year Rs.2.52 Lakhs)
 and others by way of counter-guarantee and extension of charge on
 cranes which are hypothecated to the bank on existing term loans.
 
 c) Bills Receivable which are discounted with bankers - Rs.2,801.33
 Lakhs (previous year Rs.572.23 Lakhs).
 
 d) Letters of Credit issued by Banks in foreign currencies for which
 goods were yet to be received on date of Balance Sheet US $ 24,41,750;
 Euro 43,04,996; Yen 90,08,569.
 
 e) Income Tax Assessment demands contested in appeal – Rs.296.85 lakhs
 (previous year Rs.296.85 lakhs). The contested demand arises due to
 issues which do not warrant a provision to be made.
 
 f) Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs.Nil (previous year Rs.Nil Lakhs).
 
 2 Secured Loans - Nature of Security
 
 a) Term Loans from State Bank of India are secured by Hypothecation of
 Cranes and additions thereto which are funded there from and also
 collaterally secured by Hypothecation of certain Cranes funded by the
 Bank in respect of its previous Term Loans.
 
 b) Term Loans from ING Vysya Bank are secured by Hypothecation of
 Cranes, Prime Movers & Trailers which are funded there from besides
 being collaterally secured by Hypothecation of certain Cranes funded by
 the Bank in respect of its previous Term Loans.
 
 c) Term Loans from ICICI Bank Ltd and Letters of Credit accepted by the
 bank are secured by Hypothecation of Cranes which are funded there from
 besides being collaterally secured by Hypothecation of certain Cranes
 funded by the Bank in respect of its previous Term Loans.
 
 d) Term Loans from The Saraswat Co-operative Bank Ltd are secured by
 Hypothecation of the respective Cranes and Vehicles, in aggregate, as
 well by Equitable Mortgage of certain Lands and Immovable properties
 and by Hypothecation of certain Cranes funded by the Bank in respect of
 its previous Term Loans.
 
 e) Term Loans from Axis Bank and Letters of Credit accepted by the bank
 are secured by Hypothecation of the Cranes funded there from besides
 being collaterally secured by Hypothecation of certain Cranes funded by
 the Bank in respect of its previous Term Loans.  One of the Term loan
 is personally guaranteed by the Managing Director.
 
 f) Term Loans from HDFC Bank are secured by Hypothecation of the Cranes
 funded there from.
 
 g) Term Loans from Corporation Bank are secured by Hypothecation of the
 Cranes funded there from besides being collaterally secured by
 Hypothecation of certain Cranes funded by the Bank in respect of its
 previous Term Loans with some loans being personally guaranteed by the
 Managing Director.
 
 h) Term Loans from State Bank of Hyderabad are secured by Hypothecation
 of the Cranes funded there from with besides being collaterally secured
 by Hypothecation of certain Cranes funded by the Bank in respect of its
 previous Term Loans. Some loans being personally guaranteed by the
 Managing Director.
 
 i) Term Loans from Bank of Baroda and Letters of Credit accepted by the
 bank are secured by Hypothecation of the Cranes and additions thereto
 funded there from besides being collaterally secured by Hypothecation
 of certain Cranes funded by the Bank in respect of its previous Term
 Loans. One of the Term Loan is personally guaranteed by the Managing
 Director.
 
 j) Term Loans from Bank of India are secured by Hypothecation of the
 Cranes or additions thereto funded there from.
 
 k) Cash Credit facilities availed from Dena Bank are secured against
 the Company''s receivables. These are personally guaranteed by the
 Managing Director up to Rs.37 Crores.
 
 l) Principal amount of secured Term Loans due for repayment within next
 12 months - Rs.162.44 Crores (previous year Rs.148.52 Crores).
 
 3 The Company has opted to follow the amended accounting standard rules
 with respect to change in foreign exchange rates by capitalising the
 gain or loss on foreign currency loans used for acquiring fixed assets
 to their cost. Accordingly, the cost of fixed assets has been adjusted
 accordingly.
 
 4 Confirmations from Debtors of balances due to the Company are
 generally not received. In the management''s view in the ordinary course
 of its business, the Company shall be able to realise the Debtors at
 the amounts they are stated.
 
 5 Loans and Advances include Rs.13.88 Lakhs (previous year Rs.14.13
 Lakhs) due from Officers of the Company. Aggregate of Maximum amounts
 due during the year was Rs.22.45 Lakhs (previous year Rs.19.42 Lakhs).
 
 6 Managerial Remuneration :
 
 a) To Mr. C. P. Sanghvi, Chairman and Managing Director comprises of
 Salary & Allowances Rs.144 Lakhs, Commission Rs.119 Lakhs, Payments
 towards (i) residential Electricity and Club fees & charges Rs.3.05
 Lakhs, (ii) Medical Expenses Rs.0.14 lakh (iii) Contribution to
 Superannuation Fund Rs.37.26 Lakhs. Perquisite value of Car provided as
 per Income Tax Rules Rs.0.40 lakh.
 
 b) To Mr. R. S. Desai, Executive Director, comprises of Salary &
 Allowances Rs.25.56 Lakhs, Payments towards (i) Medical Expenses
 Rs.0.15 lakh (ii) Contribution to Superannuation Fund 2.74 Lakhs.
 Perquisite value of Car provided as per Income Tax Rules Rs.0.26 lakhs.
 
 c) To Mr. S. D. Kajale, Executive Director & CFO, comprises of Salary &
 Allowances Rs.23.04 Lakhs, Payments towards (i) Medical Expenses
 Rs.0.17 lakh and Contribution to Superannuation Fund Rs.2.47 Lakhs.
 Perquisite value of Car provided as per Income Tax Rules is Rs.0.26
 lakhs.
 
 7 Related Party Disclosures as per Accounting Standard 18 -
 
 a) Key Management Personnel of the Company: 
 
 (i) Mr. C. P. Sanghvi, Managing Director, 
 
 (ii) Mr. R. S. Desai, Executive Director, and
 
 (iii) Mr. S. D. Kajale Executive Director & CFO
 
 b) Enterprises under control of Key Management Personnel :
 
 (i) Maharashtra Erectors Private Limited (MEPL)
 
 (ii) Sanghvi Hi-Lift Private Limited (SHPL)
 
 (iii) Jethi Builders & Traders Private Limited (JBTPL)
 
 c) Transactions with related parties :
 
 (i) Remuneration to Key Management Personnel is stated at (7) above.
 
 (ii) For services and facilities availed from MEPL Crane Hire Charges
 Rs.72.75 Lakhs and Trailer Hire Charges Rs.27 Lakhs
 
 (iii) Advance from MEPL – at the beginning of the year – Nil, received
 Rs.740 lakhs and refunded Rs.100 lakhs.
 
 (iv) Interest Paid to MEPL – Rs.43.40 lakhs.
 
 (v) Sitting Fees Paid to Mrs Mina C. Sanghvi – Rs.1.00 lakhs
 
 d) Mr C. P. Sanghvi has guaranteed some of the secured loans borrowed
 by the Company for which no guarantee commission is paid to him.
 
 8 Employee Benefit Plans :
 
 Defined Contribution Plans -
 
 The Company makes Provident Fund, Pension Fund and Superannuation Fund
 contributions to defined contribution retirement benefit plans for
 qualifying employees. The Company charged Rs.18.41 Lakhs (previous year
 Rs.14.72 Lakhs) to the Profit & Loss Account towards Provident Fund and
 Pension Fund contributions and Rs.50.77 Lakhs (previous year Rs.49.32
 Lakhs) towards Superannuation Fund contributions.
 
 Defined Benefit Plans –
 
 The Company makes annual contributions to the Employees'' Group Gratuity
 cum Life Assurance Scheme of Life Insurance Corporation of India, a
 funded defined benefit plan for qualifying employees. The scheme
 provides for lump sum payment to vested employees at retirement, death
 while in employment or on termination of employment of an amount
 equivalent to 15 days salary for each completed year of service.
 Vesting occurs upon completion of five years of service, except in case
 of death of permanent disability.
 
 9 Foreign Currency Transactions :
 
 a) Imports on CIF basis during the year in respect of :
 
 Components and Spare Parts - Rs.685.67 Lakhs (previous year Rs.483.60
 Lakhs) Capital Goods – Rs.26,381.24 Lakhs (previous year Rs.12,775.53
 Lakhs)
 
 b) Expenditure incurred in foreign currency during the year – Rs.27.32
 Lakhs (previous year Rs.15.34 Lakhs)
 
 c) Remittance of Dividends – Rs.132 Lakhs (previous year – Rs.88 lakhs)
 
 10 As per Accounting Standard 17, the Company''s Windmills are not a
 reportable segment and Operations from Cranes is the only reportable
 segment.
 
 11 Installed Capacity – Wind Power Generation – 5.05 MW and Generation
 of Electricity – 55.29 Lakhs Kwh (previous year 78.32 Lakhs Kwh)
 
 12 Previous year''s figures have been regrouped wherever necessary.