1.  a) Pursuant to the Scheme of Arrangement approved by the Hon''ble
 High Court, Calcutta, all the Assets, Liabilities, Capital Investment
 Subsidy, Equity QIP Share Premium and Revaluation Reserve of Heavy
 Engineering and Steel Foundry businesses of the Company as on 1st April
 2010 have been transferred to Texmaco Rail & Engineering Limited
 (“TexRail”) at their book values and accordingly, Rs 15,280.48 lacs
 being the surplus of Assets over the Liabilities of the Business so
 Demerged, has been reduced from General Reserve in terms of the Order
 of the Hon''ble High Court, Calcutta.
 
 b) Pursuant to the Scheme, TexRail has issued 12,71,83,090 Equity
 Shares of Re 1 each aggregating to Rs 1,271.83 lacs to the existing
 shareholders of the Company as on the record date, in the ratio of 1
 fully paid up Equity Share of Re 1 each of TexRail for each share of Re
 1 each held in the Company.
 
 c) The results of the Company for the current year ended 31st March,
 2011 are after giving effect to the Scheme of Arrangement with TexRail,
 whereby the Heavy Engineering and Steel Foundry businesses have been
 demerged to TexRail with appointed date of 1st April, 2010 and
 accordingly its previous year''s figures are not comparable with the
 current year.
 
 2.  Pursuant to the Supreme Court order dated 25th March, 2010 the
 Company could retain 35% of its Industrial Land with a F.A.R., 1.5
 times of normal and surrender the balance Land to DDA. The Company is
 in process of identifying the area required to be surrendered to DDA
 and have moved an application in the Court of Dist. Judge, Delhi who is
 the Authority nominated by the Hon''ble Supreme Court for executing
 orders of Supreme Court.
 
 3.  As per the Agreement with Chambal Fertilisers & Chemicals Ltd.,
 when they took over the assets and liabilities of Baddi Unit from
 01-10-99, Texmaco is liable to pay wages and salary in respect of
 excess workers / staff taken over by them over and above the required
 one to run the Baddi Unit. The Company has paid Rs. 53.25 Lakhs
 (Previous year Rs. 21.79 Lakhs) during the year to such workers/ staff
 including various other related expenses. Such expenses have been shown
 as expenses on land and capitalised under the head ‘Land''.
 
 4.  In the opinion of the management, current assets, loans and
 advances have a value on realisation in the ordinary course of business
 unless otherwise stated, at least to the amount at which they are
 stated and the provisions for all known and determined liabilities is
 adequately provided.
 
 5.  Balance of debtors and loans and advances are subject to
 confirmation from respective parties.
 
 6. Issued, Subscribed and Paid up Share Capital of the company is
 excluding 9960 Nos. of Equity Shares lying in abeyance – NSDL – Transit
 case (Previous Year – 9960 Nos. of Equity Shares)
 
 7. Sales include inter departmental transfers Rs. Nil (previous year
 Rs. 14,914.81 lakhs), Tax deducted at source Rs. Nil (previous year Rs.
 1,267.68 lakhs), excess/(short) realisation of bills Rs. Nil (previous
 year Rs. net (5.11) lakhs).