As at         As at
                                              31.03.11      31.03.10
 
 1) Contingent Liabilities to the extent quantified:
 
 Claims against the Company not acknowledged 
 as debts:
 
 – in respect of Sales tax matters in dispute  4,501         5,974
 
 – in respect of Income matters in dispute     1,348         1,607
 
 – demand raised by technology supplier for 
 which the arbitration award is awaited       15,600           --
 
 2) a) Work-in-Progress is arrived at after conversion of stocks at
 various stages of completion to equivalent completed production hours,
 which have been valued at normal labour hour rates and allocated
 overheads apart from the material cost.
 
 b) The valuation of both finished stock and work-in-progress includes
 allocable production overheads. The production overhead has been
 allocated on actuals/pro-rata basis based on Management estimates of
 their direct or indirect linkage with production. As conversion to
 equivalent completed production hours and allocation as above is based
 on management''s technical estimates, the auditors have relied upon the
 same.
 
 3) Certain debit and credit balances including debtors, creditors and
 loans and advances are subject to confirmation and reconciliation
 arising there from.
 
 4) In respect of demand for increase in rentals amounting to Rs. 22,897
 (Previous year Rs 22,897) on leasehold land from Calcutta Port Trust in
 the earlier years, the Company has preferred a Special Leave Petition
 in Hon''ble Supreme Court against the judgment of Hon''ble High Court on
 the matter. The Supreme Court has referred the said matter to the
 Calcutta High Court for a fresh decision on merit. Pending decision of
 the Court, provision amounting to Rs. 9,448 made their against has been
 considered adequate by the management.
 
 5) The Company has made full provision for dues to the ESI authorities
 arising out of the ESI Central) – 2nd Amendment Rules, 1996 which could
 not be deposited with the ESI authorities because of a stay order
 issued by the Calcutta High Court on 25 April, 1997. Upon appeal by the
 department, the stay order was set aside by the Division Bench of the
 Calcutta High Court on 16 March, 2004. In 2009-10, the company received
 a claim of Rs. 3,317 for the year ended 31st March 2002 against which
 it had deposited Rs 1,306 and adjusted the opening liability to that
 extent. The balance liability has been carried forward pending final
 decision and determination of liability in this respect and the same
 has been considered to be adequate.
 
 6) Related Party Disclosures:
 
 (A) Related parties with whom the Company had transactions, etc.
 
 (a) Enterprise where control exists: Stone Intermodal Private Limited
 (Subsidiary)
 
 (b) Associates:
 
 i.  Duncans Tea Limited
 
 ii.  Odyssey Travels Limited
 
 iii.  Shubh Shanti Services Limited
 
 iv.  Andhra Cements Limited
 
 v.  NRC Limited
 
 vi.  Sewand Investments Pvt. Ltd
 
 vii. Dail Consultants Ltd
 
 viii. Duncan Industries Ltd
 
 ix.  Kavita Marketing Pvt. Ltd
 
 (c) Key Management Personnel (KMP)
 
 Mr. A. Mondal : Managing Director & CEO
 
 Mr. Shrivardhan Goenka : Wholetime Director
 
 (d) Relative of director/KMP : Mrs. Indu Goenka
 
 (B) The parties listed in (b) above though are not required to be
 disclosed as per requirements of AS-18, these have been included
 hereinabove in view of the requirement of Clause 32 of the Listing
 Agreement.
 
 (C) Statement showing details of AS-18 related transactions:
 
 7) Carrying value of Fixed Assets of the Colour Monitor Unit at Kustia
 Road being affected due to obsolescence was considered for impairment
 as on 1st April, 2004 and Rs 24,100 equivalent to the entire book value
 of the fixed assets was considered as an impairment loss in the said
 financial year.
 
 8) Certain plant and machineries and land and building of the company
 as on 31.12.2001 and 01.01.2007 were revalued by the approved valuers
 on net replacement cost basis and fair value basis respectively and
 surplus of Rs. 424,965 arising there from was credited to Revaluation
 Reserve. Depreciation includes additional charge of Rs.9,213 for the
 year ended 31st March ,2011 (Previous year Rs. 10,052,) due to
 revaluation of fixed assets. Accordingly, equivalent amount has been
 transferred from capital reserve to Profit and Loss Account.
 
 9) Employee Benefits :
 
 The disclosures required under Accounting Standard 15 Employee
 Benefits notified in the Companies (Accounting Standards ) Rules,
 2006, are given below :
 
 Defined Contribution Scheme :
 
 Contribution to Defined Contribution Plan , recognized for the year are
 as under :
 
 Defined Benefit Scheme
 
 The employee''s gratuity fund scheme is a defined benefit plan. 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. The obligation for Leave Encashment is recognized in the
 same manner as gratuity.
 
 * Past Service Cost has been accrued on account of increase in the
 Ceiling Limit of Gratuity under the Payment of Gratuity Act, 1972 .
 
 Notes: Assumptions related to future salary increases, attrition,
 interest rate for discount and overall expected rate of return on
 Assets have been considered based on relevant economic factors such as
 inflation, market growth and other factors applicable to the period
 over which the obligation is expected to be settled
 
 10) The company has been engaged in developing certain technology used
 for products related to Railways. It has been decided that these will
 be produced by its'' wholly owned subsidiary, viz., Stone Intermodal (P)
 Ltd (subsidiary). Further, to the cost incurred in this respect
 earlier, which have been transferred to the subsidiary, the management
 has decided to recognize the cost for the current year as the cost for
 development of technology. Accordingly, Rs. 2,057 has been considered
 as intangible fixed assets as on 31st March'' 2011.
 
 11) Loans and advances includes Rs. 53,797 (Previous Year Rs. 33,516,)
 recoverable from Stone Intermodal Private Limited (a subsidiary) being
 administrative and other costs allocated for the development of the
 product for Rail Runner Project to be undertaken by the said
 subsidiary.
 
 12) The Company is engaged primarily in the business of Rail Products
 and all other activities are incidental thereto. Further, the company
 sells primarily in the domestic market where its operations are
 governed by the same set of risks and returns and the overseas sales
 are insignificant. Accordingly the separate primary and secondary
 segment reporting disclosure as envisaged in Accounting Standards
 (AS-17) on Segment Reporting is not applicable to the company.
 
 13) The company is in the process of compiling information with regard
 to suppliers covered under Micro, Small and Medium Enterprise
 development Act, 2006. To the extent identified, the Company has no
 information from the suppliers under the Act and accordingly the
 disclosure as required in Section 22 of the said Act could not be given
 in these accounts.
 
 14) All the numerical figures stated hereinabove has been expressed in
 terms of Rs. thousand.
 
 15) Previous Year''s figures have been re-arranged / re-grouped wherever
 necessary.