1.  Contingent liabilities not provided for in respect of :-
 
 Particulars                         Current Year    Previous Year
                                     (Rs in Lacs)     (Rs in Lacs)
 
 Sales Tax Demand                            2.55             2.55
 
 Interest on Foreign Currency Loan        127.28@          128.52@
 
 @ In terms of agreement dated 14th December 2005 entered with Occident
 Orient Company Limited and subject to approval of the Reserve Bank of
 India (RBI), interest of USD 2,81,974/- (Previous Year USD 2,81,974/-)
 for earlier years is payable by the company on Foreign Currency Loan of
 USD 10,04,944. Pending approval of RBI, this liability is being shown
 as contingent liability.
 
 2.  The Company holds 100% (Previous year 100%) shares of SBEC
 Investment Limited.
 
 3.  Balances of Sundry Debtors, Sundry Creditors and Loan and advances
 in few cases are subject to confirmation and reconciliation.  However
 in the opinion of the management the differences arising on such
 reconciliation, if any, are not likely to be material.
 
 4.  In the absence of necessary agreements/approvals, interest on
 overdue credits/loans from foreign suppliers/lenders has not been
 provided.
 
 5.  Liability of Rs. 7.66 lakh (Previous year Rs. 7.66 lakh) related to
 deputation charges of foreign technicians has not been provided. The
 same will be provided at the time of actual payment.
 
 6.  The accounts of the Company for the year ending 31.03.11 have been
 prepared on going concern basis. The management is confident to revive
 the business activities in near future depending upon more favourable
 conditions prevailing in the market bearing unforeseen circumstances.
 
 7 Liability of Rs.25,17,989/- (USD 55,781.77) (previous year
 Rs.25,42,533/-) in respect of interest on foreign currency loan has not
 been provided. The same will be provided at the time of actual payment.
 
 8.  Reversal of diminution of Current Quoted investment aggregating
 Rs.89,31,924/- has not been provided. Profit & Loss of such investment
 are accounted at the time of sale of such investment. Resulting of such
 non reversal of diminution the profit for the year and investment are
 shown lower by Rs. 89,31,924/-
 
 9.  Difference on exchange rate fluctuation on Foreign Liabilities
 amounting to Rs.1,76,55,214/- (previous year Rs. 1,64,24,106/-) has not
 been provided. The fluctuation in foreign transaction, if any will be
 accounted for in the year of remittance/final adjustment. Resulting of
 such non provision the profit for the year and liability are shown
 lower by Rs.1,76,55,214/- (previous year Rs. 1,64,24,106/-).
 
 10.  In respect of disputes with two foreign parties/supplier M/s
 Silver Weibull,Sweden and M/s Hagglunds Drives AB. Sweden the Hon''ble
 Delhi High court has passed orders dated 01-09-2010 and 21-09-2010
 directing the Company to settle the outstanding of these suppliers in
 instalments on the dates stated in the orders. The settlement requires
 remittance in foreign currencies and is thus subject to necessary
 approval from RBI, which has not yet been received. Pending such
 approval the directions could not be implemented. The consequential
 effect of the order has not been accounted for in the current year.
 
 11.  Segment Reporting
 
 The Company operates in a single business and geographical segment and
 the requirements of Accounting Standard 17 on Segment Reporting are not
 relevant.
 
 12.  Related Parties Disclosures
 
 1.  The names of the Related Parties as certified by the management are
 as follows :
 
 a) Enterprises Where Control Exists
 
 i.  SBEC Investments Limited (Subsidiary company)
 
 ii.  SBEC Systems Limited, United Kingdom (substantial interest in the
 Company)
 
 b) Enterprises where Substantial Interest Exists.  
 
 i.  SBEC Sugar Limited
 
 c) Key Managerial Personnel
 
 Mr. Anil Jain, Chief Financial Officer (appointed as Manager from
 01.06.2009 under Section 269 of the Companies Act, 1956).
 
 d) Individual owning, directly or indirectly , an interest in the
 voting power of the reporting enterprise that gives them control or
 significant influence over the enterprise : Mr.U.K.Modi
 
 e) Relative of individual owning substantial interest and their
 Enterprises :
 
 Mrs.Kumkum Modi, Mr.Abhishek Modi, Ms.Meghna modi, Mrs. Himani Modi,
 Mr.Jayesh Modi, Modi Arts Pvt Ltd.,, Modi Goods and Retail Services Pvt
 Ltd., Jai Abhishek Investments Pvt Ltd., Kamakhya Cosmetics &
 Pharmaceuitical Pvt.Ltd., Modi Diagnostics Pvt Ltd., Modi Revlon
 Pvt.Ltd., Modi Senator (India) Pvt Ltd., First Move Management Services
 Pvt Ltd., Revlon Lanka Pvt Ltd., Swasth Investment Pvt Ltd., Umesh Modi
 Corp Pvt Ltd., Modi Omega Pharma (India) Pvt Ltd., Modi lllva India Pvt
 Ltd., A to Z Holding Pvt Ltd., Longwell Investment Pvt Ltd., SBEC Sugar
 Limited , Bihar Sponge Iron Ltd., Modi Mundipharma Pvt Ltd., Modiline
 Travel Service Pvt Ltd., Modi Industries Ltd., Morgardshammer India
 Ltd., Win Medicare Pvt Ltd., H.M.Tubes & Containers Pvt Ltd., * Modi
 Motors Pvt Ltd., M.GMobile India Pvt Ltd.,Modi Gourmet Limited,Chandil
 Power Ltd..Revlon Trading Bangladesh Pvt. Ltd, * SBEC Bio Energy Ltd.,
 Meghna AutoWorks Pvt.  Ltd., Mundipharma (Bangladesh) Pvt. Ltd., Jayesh
 Tradex Pvt. Ltd.
 
 * Indicates that during the period , there is transaction with these
 relatives and enterprises.
 
 13.  Deferred Taxation
 
 The Company has no deferred tax liability. There are deferred tax
 assets on account of unabsorbed depreciation and carried forward
 business losses, which as a matter of prudence have not been
 recognised.
 
 14.  (a) Current Liabilities include credit balance of Rs. 0.90 lacs
 (Previous year Cr. Balance Rs 0.56 lacs in the name of Mr. Anil Jain &
 Mr. Anil Rustagi) in the name of Mr. Anil Jain appointed as Manager
 under Section 269 of the Companies Act, 1956.
 
 (b) Current Liabilities include Rs.0.37 lacs (Previous year 0.35 lacs
 in the name of Ms.Shivani Chaudhary) in the name of Ms. Shwetambery
 Khurana as Company Secretaries under Companies Act 1956.
 
 15.  Employee Benefits
 
 The company has adopted Revised AS- 15 ''Employee Benefits''. In
 accordance with the transitional provision of revised AS - 15,
 additional liability (net of tax) under new method.
 
 Contributions to Defined Benefit /Contribution Plan, recognized as
 expense for the year are as under:
 
 b) Defined Benefit Plan
 
 The employees'' gratuity fund scheme is a Defined Benefit Plan (DBP).
 The present value of obligation is determined based on actuarial
 valuation using the Projected Unit Credit Method, which recognizes each
 period of service as giving rise to additional unit of employee benefit
 entitlement and measures each unit separately to build up the final
 obligation.
 
 16.  Additional information pursuant to provisions of Part II of
 Schedule VI to the Companies Act, 1956 (to the extent applicable) : a)
 Stock, Purchases and Sales of Goods traded in: NIL (Nil)
 
 17.  Previous Year figures are given in brackets and have been
 regrouped / rearranged wherever required.