1.  Contingent Liabilities :                    (Rs. in lacs)
                                 Current Year   Previous Year
 
 a) i) Bank Guarantees              2,276.28          1728.82
 (includes expired BGs-Rs.  
 82.57 lacs - Pre. 
 Yr. Rs. Nil) 
 
 
 ii) Letters of Credit              2,072.63           886.14
 Times deposits pledged 
 with banks agst. (a-i) above         166.27           166.27
 
 b) Excise/Service Tax matters          2.52             2.52
 
 c) Sales Tax matters                      -            13.27
 
 d) Income Tax matters                477.72             6.50
 
 
 e) Penalties for late deliveries/liquidated damage in respect of
 contracts are accounted for as and when claims are received and
 accepted. Aggregate amount of possible claims as at the year end is not
 ascertained.
 
 f) Pursuant to the judgement of the State Industrial Court, Raipur, on
 the labour case relating to strike declared in the year 1990, the
 Company has been directed to pay compensation to the retrenched workers
 amounting to Rs.82.80 lacs in total. However the company has obtained a
 stay against the said order from the High Court, Bilaspur vide order
 dated 28.11.2001, on account of a petition contending the order which
 is yet to be heard.  Since the management is hopeful of favourable
 decision, no provision has been made in the accounts for the said
 liability of Rs. 82.80 lacs.
 
 g) Pursuant to the interim judgement of the Honourable High Court,
 Bilaspur in the case relating to levy of Terminal Tax by Municipal
 Corporation, Bhilai, the Company has been directed to deposit 50% of
 the tax demand for the period upto 31st December, 2001 subject to which
 the balance 50% has been stayed. Accordingly the company deposited
 Rs.5.83 lacs on 14.02.02. However the said amount covers about 50% of
 the full liability (100%) upto 31.03.2005. The petition is yet to be
 heard. However from 2005-2006 onwards the company is making a provision
 / payment only for 50% of the tax liability for the respective year on
 the basis of the interim judgement. Since the management is hopeful of
 favourable decision no provision is being made in the accounts for the
 balance 50% of the liability.
 
 2.  Interest on Investments under lien & custody of Government
 Departments and Export Incentives, the quantum of which are
 unascertainable with reasonable certainty, continue to be accounted for
 on Cash basis.
 
 3.  a) Sales include sale of scrap / surplus raw materials from
 manufacturing units. Sales and Job work receipts are exclusive of :
 
 i) Sales Tax  Rs.  6,62,02,706/- (Previous Year Rs. 5,21,90,286/-)
 
 b) Sales of goods include direct & indirect exports as under;
 
 -Direct Exports Rs. 7,57,44,878/- (Previous Year - Rs.5,02,32,936/-)
 
 -Indirect Exports Rs. Nil (Previous Year - Rs. Nil)
 
 4.  During the year ending 31-03-2011 the company has generally worked
 on single shift. Hence depreciation has been provided on single shift
 basis.
 
 5.  Pursuant to Accounting Standard (AS) 28, as explained to us, there
 being no indication of impairment of assets, no loss has been
 recognised on this account by the company.
 
 6.  Sundry Debtors and other debit and credit balances are subject to
 confirmation.
 
 7.  Previous year''s figures have been re-arranged & re-grouped wherever
 necessary to conform to the classifications and make them comparable
 with those of current year.
 
 8.  Some of the Bank Balances are subject to reconciliation and balance
 confirmation.
 
 9.  As per the accounting policy followed by the company the valuation
 of Finished Goods is inclusive of excise duty.  Accordingly the value
 of Finished Goods in Profit & Loss A/c include the amount of excise
 duty. Correspondingly the amount of such duty on.finished goods has
 been debited to Excise Duty Expenses in the Profit & Loss A/cwith an
 equivalent credit amount carried forward in the Balance Sheet under the
 head Liability for Expenses''. As a result the effect of the same on
 the profit for the year is ''Nil''.
 
 10.  There are no Micro, Small & Medium Enerprises, to whom the Company
 owes dues, which are outstanding for more than 45 days as at 31st
 March, 2011. This information as required to be disclosed under the
 Micro, Small and Medium Enterprise Development Act, 2006 has been
 determined to the extent such parties have been identified on the
 information available with the Company.