1.  Contingent Liabilities:
 
 DLF Universal Limited (Formerly known as DLF Industries Limited) (here
 in referred to as DLF) had filed a claim of Rs. 500 Lacs and the matter
 has been under Arbitration. During 2006-07, the Company had entered
 into a Memorandum of Understanding with the DLF in the terms of which
 DLF has agreed to sale/ transfer the machineries to the Company and/or
 its nominees which are in its possession or to be dispatched by the
 foreign supplier. The Company has agreed to make payment of Rs. 250
 Lacs exclusive of Sales Tax, Freight and Insurance to be borne by. the
 Company for the machineries, which are in possession of DLF. The
 Company has also agreed to open confirmed Letter of Credit in favor of
 KONCAR for shipment of the remaining machineries. The Company has made
 the payment of Rs.50 Lacs to DLF.
 
 DLF has filed Statement of Claim before the Arbitral Forum inter alia
 for breach of terms of Memorandum of Understanding on the part of the
 Company. The Company has made a counter claim for financial losses,
 damages, costs and claims against DLF for non-fulfillment of
 contractual obligations. The matter is pending for hearing.
 
 2.  Disputed liabilities not provided for:
 
 2.1. ESIC Kerala had made a demand of Rs.9.21 Lacs during 2009-2010 and
 the same has been stayed by Hon''ble High Court. This has been charged
 to revenue after adjusting the provision of Rs.2.4 Lacs available in
 the Books.
 
 2.2. Disputed power charges to KSEB and arrears:
 
 After a prolonged discussions and requests with various Authorities,
 the long pending KSEB arrears was crystallized and the Company has paid
 Rupees Ten Crores during the year against final settlement. However,
 thereafter, the Board unilaterally demanded Rs.4,75,58,345/- as further
 dues, which the Company has challenged before the Hon''ble High Court
 of Kerala. The Court stayed the same and directed the Government to
 re-examine and consider the Company''s representation for waiver of the
 MD charges for the period when the Company was closed and no
 electricity was consumed. The Company is hopeful of a favorable
 decision and hence this liability is not provided in Books of Account.
 
 2.3. Central excise Refund
 
 As per the order of the Asst. Commissioner of Central Excise, Kottayam
 Division, Kottayam dated 23.12.1998 holding that Calcium Carbide
 manufactured and used captive consumption in the manufacture of
 acetylene black within the factory is not liable for levy of excise
 duty, the company is entitled to a refund of excise duty of
 Rs.82,89,691/- in respect of the period from April 1978to July, 1983.
 
 This was confirmed by the Hon''ble CEGAT, New Delhi as per the order
 No.A/1076/02 NB (D) dated 24.10.2002. Based on the above order the
 company filed a refund claim for Rs.82,86,691/- before the Deputy
 Commissioner of Central Excise, Kottayam Division on 30.01.2003.
 However the Deputy Commissioner allowed only Rs.37,99,198/- as refund
 and the same was recognized as income in the Profit & Loss account in
 the year 2002-2003. The claim for the balance amount of Rs.44,86,993/-
 was rejected by the Excise authorities for want of proof for payment of
 duty.
 
 - Against this order the company had filed an appeal before the
 Commissioner of Central Excise and Customs (Appeals) Cochin on
 22-10-2003 and the appeal was disposed of in favour of the Company.
 
 The Department has gone in Appeal. In view of the above, the claim for
 the refund of the balance amount of Rs.  44,86,993/- has not been
 recognized in the accounts. Company has also filed appeal before CEGAT,
 New Delhi for release of balance amount, which is pending for disposal.
 
 3.  Contingent Liabilities:
 
 During the year the Company has made payment of statutory dues,
 retrenchment compensation etc. amounting to Rs.473.41 Lakhs in
 aggregate to the remaining 261 employees of the Company who have
 submitted their resignation pursuant to a settlement agreement signed
 between the Company and the Trade Unions in the presence of Labour
 Commissioner, Trivandrum. Consequent upon this, the entire labour
 issues / industrial disputes stand settled once for all.
 
 4.  Due to Small Scale Industrial undertakings.  -
 
 On verification of invoices issued by the suppliers of the company
 there is no Small Scale industry as defined under the Interest on
 Delayed Payments of Small Scale and Ancillary Industrial Undertaking
 Ad, 1933 and section 3(i) of the Industrial (Development and
 Regulation) Act, 1951, having total amount outstanding exceeding Rs.
 1,00,000 to each unit.
 
 5 Loans and Advances include amount of Rs.31,40,000/- (Rs. Nil) dues to
 Associate Concern.
 
 6.  Fixed Assets.
 
 During the financial year, the entire Plants and Machineries,
 equipments and other old movables at Chingavanam (Dist - Kottayam) were
 disposed off.
 
 7.  Current Assets 
 
 7.1. As the Company has been under Lock -out since July 1999, dues
 under the heads Sundry Debtors, Loans and Advances and Current
 Liabilities including Sundry Creditors are subject to confirmation.
 
 7.2. Sundry Debtors include an amount of Rs.1,35,31,446/-
 (Rs.1,35,31,446/-) due for a period exceeding three years against which
 full Provision of Rs.1,35,31,446/- has been made towards Doubtful
 Debts. The Company has filed suits before different judicial
 authorities against certain debtors for recovery of dues amounting to
 Rs.42,91,787/- (Rs.42,91,787/-).
 
 Against some of these suits decrees were awarded in favour of the
 Company for an amount of Rs.23,11,610/- (Rs.23,11,610/-), which are in
 process of execution.
 
 7.3. Advance against purchases include an amount of Rs.8,36,990/-
 (Rs.836990/-) due for a period exceeding three years for which
 provision for doubtful advance has been made.
 
 Fundamental accounting assumption regarding Going Concern.
 
 8.  As pending issues inter-alia resumption of power supply, grant of
 Financial Assistance and other incentives from State Government and
 other concerned Authorities remain unresolved, the chances of early
 resumption of manufacturing activities of viable plants receded. The
 Company has disposed off its Factory buildings, Plant and machineries
 etc., at Chingavanam during the year. The above conditions indicate the
 existence of a material uncertainty that may cast significant doubt
 about the Company''s ability to continue as a going concern.
 
 9.  Capital Commitments
 
 Estimated amount of contracts remaining to be executed on capital
 accounts Rs.86,64,839/- (Rs. 86,64,839/-).
 
 10.  The Companies in which the Directors are associated have filed the
 Annual Returns and did not make any default in the repayment of
 deposits if any fallen out. On the basis of representations received
 from the Directors, none of the Directors attract disqualifications
 under section 274(1 )(g) of the Companies Act, 1956.
 
 11.  The Company had no full time Company Secretary as required u/s
 383Aof the Companies Act, 1956 during the year under report due to
 layoff / lock out.
 
 12.  Others
 
 12.1.  Basic earnings per Equity Share and Diluted earnings per Equity
 Share have been computed by dividing net profit by the weighted average
 number of equity shares outstanding for the year.
 
 12.2.  Calculation of basic Earnings per share
 
 12.3.  The Sundry Debtors, Sundry Creditors and Loans and Advances are
 subject to confirmation, reconciliation, and adjustments. The
 Management is of the opinion that such reconciliation or adjustments if
 any will not materially affect the accounts.
 
 12.4.  Traveling Expenses include foreign travel expenses of Directors,
 which are incurred for purposes other than business.
 
 12.5.  In view of the accumulated losses, the Management has not
 provided deferred tax assets as well as deferred tax liabilities. Hence
 the disclosure in respect of accounting of taxes on income as required
 under Accounting Standard 22 issued by ICAI is not done.
 
 12.6.  Figures are given in thousands unless otherwise stated
 
 12.7.  Figures for the previous year have been regrouped / rearranged
 wherever necessary and are given in bracket unless otherwise specified.
 
 12.8.  The Financial statements for the year ended 31.03.2011 had been
 prepared as per the then applicable pre-revised Schedule VI of the
 Companies Act, 1956. Consequent to the notification of Revised Schedule
 VI under the Companies Act, 1956, the Financial Statements for the year
 ended 31.03.2012 are prepared as per revised Schedule VI. Accordingly,
 the previous year figures have also been re-classified to conform to
 this year''s classification. The adoption of Revised Schedule VI for
 previous year figures does not impact recognition and measurement
 principles followed for preparation of financial statements.