Thermax

1.  Contingent Liability
 
 a) Disputed demands in respect of Excise, Customs Duty and Service Tax
 Rs. 14.22 Crore (Previous Year Rs. 11.31 crore), Sales Tax Rs. 6.53
 Crore (Previous YearRs. 1.28 Crore) and other Statutes Rs. 0.19 Crore
 (Previous YearRs. 1.04 Crore).
 
 b) Income Tax
 
 i) Demands disputed in appellate proceedings Rs. 24.53 Crore (Previous
 Year Rs. 13.83 Crore).
 
 ii) References / Appeals preferred by Income Tax department in respect
 of which, should the ultimate decision be unfavourable to the company,
 the liability is estimated to be Rs.  22.30 Crore (Previous YearRs.
 21.30 Crore)
 
 c) Counter Guarantees given by the company to the banks on behalf of
 group companies : Rs. 6.32 Crore on behalf of Thermax Engineering
 Construction Co. Ltd. (TECC), Rs. 40.16 Crore on behalf of Thermax
 Instrumentation Ltd. (TIL) and Rs. 1.30 Crore on behalf of ME
 Engineering Ltd (ME Engg.), towards securing advances received from
 clients and performance of contracts.(Previous Year Rs. 9.88 Crore for
 
 TECC, Rs. 35.86 CroreforTILandRs. 1.09 Crore for ME Engg.).
 
 d) Counter Guarantees given to the banks for guarantees issued by them
 on companys behalf Rs. 837.11 Crore (Previous Year Rs. 626.56 Crore).
 
 e) Indemnity Bonds/Corporate Guarantees given by the company to the
 customers on behalf of ME Engineering - Rs. Nil (Previous Year Rs 1.62
 Crore).
 
 f) Indemnity Bonds/Corporate guarantees given to Customs, other
 Government departments and various customers Rs. 33.49 Crore (Previous
 Year Rs 40.65 Crore).
 
 g) Liability for unexpired export obligations Rs.  19.67 Crore
 (Previous YearRs. 9.13 Crore).
 
 h) Claims against the company not acknowledged as debts Rs. 7.70 Crore
 (Previous Year Rs. 8.40 Crore).
 
 i) Bills Discounted with banks Rs. 73.45 Crore (Previous YearRs. 25.51
 Crore).
 
 j) Liability in respect of partly paid shares in Parasrampuria
 Synthetics Ltd. Rs. 0.19 Crore (Previous YearRs. 0.19 Crore).
 
 2.  Micro & Small Enterprises
 
 Micro & Small enterprises as defined under the Micro, Small and Medium
 Enterprises Development Act 2006 (MSMED) have been identified to the
 extent of information available with the company. This has been relied
 upon by the auditors.
 
 Sundry Creditors included following amount due to MSMED parties :
 
 							   Rs. Crore
 
 Sr.  Particulars _2008-09
 
 No.                                Principal        Interest    Total
 
 a Total Outstandings dues to 
 micro and small enterprises          0.59             0.00      0.59
 
 b Principal amount and Interest
   due thereon remaining               -                -         -
   unpaid as at end of the year
 
 c Amount of Interest paid in 
   terms of Section 16 of MSMED       7.79             0.07      7.86
   Act alongwith the amount of the 
   payment made to supplier beyond
   appointed day
 
 d Outstanding Interest (where 
   principal amount has been           NA              0.00      0.00
   paid off to the supplier but 
   interest amount is outstanding 
   as on March 31)
 
 e Total Interest outstanding as on 
   March 31 (Interest inb            NA              0.00      0.00 
   + interest in d above)
 
 3.  Share Capital
 
 Issued, Subscribed & Paid up Equity Capital includes 1,06,78,200 Equity
 Shares of Rs. 21- each allotted as fully paid up for consideration
 other than cash as per various schemes of amalgamation and 1,71,37,500
 shares of Rs. 21- each issued by way of bonus shares on capitalisation
 of General Reserve.
 
 4.  Extra-ordinary items of expenses/income during the year are as
 follows
 
 Extra-ordinary item of income Rs. 1.36 crore (previous year Rs. 2.10
 crore) during the current year represents write back of die provision
 made by the company during previous years towards possible financial
 obligations on account of counter-guarantees given by the company in
 relation to ME Engineering Ltd., UK.
 
 5.  Secured Loan
 
 Working capital facilities (packing credits, shipping loans, cash
 credits & overdrafts) from banks are secured by hypothecation of
 present and future stock of raw materials, consumables, spares,
 semi-finished goods, finished goods & book debts.
 
 6.  Other Liabilities
 
 Other Liabilities include following amounts which will be credited to
 Investors Education and Protection Fund (on expiry of the specified
 period, if the amount remains unclaimed at that time):-
 
 7.  In cases where letters of confirmation have been received from
 parties, book balances have been generally reconciled and adjusted, if
 required. In other cases, balances in accounts of sundry debtors,
 sundry creditors and advances or deposits have been taken as per books
 of account.
 
 8.  Foreign Exchange Transactions
 
 The year end foreign exposures in respect of monetary items that have
 not been hedged by a derivative instrument or otherwise are given
 below:
 
 Amounts receivable (net) in foreign currency on account of the
 following:
 
 Particulars       Amount in Rs. Crore      Amount in Foreign Currency
 
 Export of Goods           712                     USD 1,407,022
 
 Export of Goods           133                      EURO 199,154
 
 Export of Goods          0.57                        GBP 79,257
 
 9.  Estimated amount of contracts remaining to be executed on capital
 account (net of advances) and not provided for Rs.  39.16 Crore
 (Previous year Rs. 59.26 Crore).
 
 10.  Capitalisation of expenses
 
 Raw materials, labour and overheads capitalised in respect of Plant &
 Machinery Rs. 1.71 Crore (Previous Year Rs.  2.59 Crore).
 
 11.  Previous years expenses / income included under various heads of
 accounts:
 
 							  Rs. Crore
 
 Drawing & Design, Site Expenses / Technical Charges            0.02
 
 Sales Reversal                                                 9.60
 
 Other Miscellaneous Expenses                                   0.11
 
 12.  Segment Reporting
 
 i The Company has disclosed Business Segment as the primary segment.
 Segments have been identified by the management taking into account the
 nature of the products, manufacturing process, customer profiles, risk
 and reward parameters and other relevant factors.
 
 The Companys operations have been mainly classified between two
 primary segments, Energy and Environment. Composition of business
 segments is as follows:
 
 ii Segment Revenue, Segment Results, Segment Assets and Segment
 Liabilities include the respective amounts identifiable to each of the
 segments as also amounts allocated on a reasonable basis.
 
 The expenses, which are not directly attributable to the business
 segment, are shown as unallocated cost.
 
 Assets and Liabilities that cannot be allocated between the segments
 are shown as a part of unallocated Assets and Liabilities respectively.
 
 iii Secondary segments have been identified with reference to
 geographical location of external customers.  Composition of secondary
 segments is as follows:
 
 a) India
 
 b) Outside India
 
 iv Inter-segment transfer price is arrived at on the basis of cost plus
 a reasonable mark-up.
 
 13.  Disclosure, as required by AS - 28 (Impairment of Assets):
 
 In terms of Accounting Standard 28 (AS-28) there was no impairment loss
 on assets during the year under report.