1.  Contingent Liability
 
 a) Disputed demands in respect of Excise, Customs Duty and Service Tax
 Rs. 19.88 Crore (Previous Year Rs. 22.11 crore), Sales Tax Rs. 14.41
 Crore (Previous Year Rs. 13.38 Crore) and other Statutes Rs. 0.09 Crore
 (Previous Year Rs. 0.09 Crore).
 
 b) Income Tax
 
 i) Demands disputed in appellate proceedings Rs. 41.99 Crore (Previous
 Year Rs. 34.55 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.19.44 Crore (Previous Year Rs.19.38
 Crore)
 
 c) Counter Guarantees given by the company to the banks on behalf of
 group companies : Rs. 64.78 Crore on behalf of Thermax Instrumentation
 Ltd.  (TIL) (Previous Year Rs. 92.64 Crore for TIL and Rs. 0.34 Crore
 for Thermax Engineering Construction Co. Ltd.).
 
 d) Indemnity Bonds/Corporate Guarantees given by the Company on behalf
 of group companies : Thermax Denmark ApS, Denmark Rs. 62.84 Crore
 (Previous Year Nil).
 
 e) Liability for unexpired export obligations Rs. 56.84 Crore (Previous
 Year Rs. 48.71 Crore).
 
 f) Claims against the company not acknowledged as debts Rs. 9.00 Crore
 (Previous Year Rs. 9.45 Crore).
 
 g) Bills Discounted with banks Rs.119.43 Crore (Previous Year Rs. 43.39
 Crore).
 
 h) Liability in respect of partly paid shares in Parasrampuria
 Synthetics Ltd. Rs. 0.19 Crore (Previous Year Rs. 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.
 
 3.  Directors Remuneration **
 
 @ includes Rs. 0.55 Crore (Previous Year Rs. 0.42 Crore) commission
 payable to the Managing Director.
 
 ** Within the limits specified by Schedule XIII of the Companies Act,
 1956.
 
 Note : Provisions for contribution to employee retirement / post
 retirement and other employee benefits which are based on valuation
 done on an overall company basis are excluded above.
 
 4.  Share Capital
 
 Issued, Subscribed & Paid up Equity Capital includes 1,06,78,200 Equity
 Shares of Rs. 2/- 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. 2/- each issued by way of bonus shares on capitalisation
 of General Reserve.
 
 5.  Extraordinary items of expenses/income
 
 Extraordinary expense for the year ended 31.03.2010, Rs. 174 crore (Rs
 114.86 crore, net of tax), represents the rupee equivalent of USD 38
 million payable under a business settlement agreement dated 23.02.2010
 with Purolite International Ltd., a US competitor, in settlement of a
 business dispute concerning, inter alia, their trade secrets. As per
 the agreement, the amount was payable in four instalments of USD 9.5
 million each, spread over the calendar year, beginning April 2010.
 
 6.  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.
 
 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.  Estimated amount of contracts remaining to be executed on capital
 account (net of advances) and not provided for Rs.13.49 Crore (Previous
 year Rs. 15.57 Crore).
 
 9.  Capitalisation of expenses
 
 Raw materials, labour and overheads capitalised in respect of Plant &
 Machinery Rs. 0.18 Crore (Previous Year Rs.3.07 Crore).
 
 10.  Companies acquired during the year
 
 During the year, the company, through its wholly owned subsidiary
 Thermax Denmark ApS, acquired 100% stake in Danstoker A/S, Denmark and
 Ejendomsanpartsselskabet Industrivej Nord 13 (EIN), Denmark. In turn,
 Danstoker A/S has wholly owned subsidiaries namely Omnical Kessel &
 Apparatebau GmbH, Germany and Danstoker (UK) Ltd., UK.  As a result of
 these acquisitions, the company now owns boiler manufacturing
 facilities in Denmark and Germany.
 
 11.  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:
 
 Segment        Products Covered
 
 a) Energy      Boilers and Heaters, Absorption Chillers/Heat Pumps,
                Power Plants
 
 b) Environment Air Pollution Control Equipments/ Systems, Water
                & Waste Recycle Plants,
 
 Ion Exchange Resins & Performance Chemicals.
 
 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.
 
 21.  Related Party Disclosures
 
 Related party disclosures as required under Accounting Standard 18
 issued by The Institute of Chartered Accountants of India are given
 below:
 
 Relationship :
 
 A) Holding Company
 
 RDA Holding & Trading Pvt. Ltd.
 
 B) Enterprises controlled by the Company :
 
 Subsidiary Companies:
 
 i.  Domestic:
 
 Thermax Sustainable Energy Solutions Ltd.  Thermax Instrumentation Ltd.
 
 Thermax Engineering Construction Co. Ltd.  Thermax Onsite Energy
                                            Solutions Ltd.
 
 Thermax SPX Energy Technologies Ltd.       (Joint venture with SPX
                                            Netherlands BV)
 
 Thermax Babcock & Wilcox Energy 
 Solutions Pvt. Ltd.                        (Joint Venture with
                                            Babcock & Wilcox India
                                            Holdings Inc.)
 
 ii.  Overseas:
 
 Thermax Europe Ltd., U.K.   Thermax do Brasil Energia-e Equipamentos
                             Ltda., Brazil
 
 Thermax International Ltd., 
 Mauritius                   Thermax Inc., USA
 
 Thermax Hong Kong Ltd., 
 Hong Kong
 
 Thermax (Zhejiang) Cooling 
 & Heating Engineering
 Co. Ltd., China
 
 Thermax Netherlands BV., 
 Netherlands                Thermax Denmark ApS, Denmark
 
 Danstoker A/S, Denmark     Danstoker (UK) Ltd., UK
 
 Ejendomsanpartsselskabet 
 Industrivej Nord 13 (EIN), 
 Denmark
 
 Omnical Kessel & 
 Apparatebau GmbH, Germany
 
 C) Individuals having control or significant influence over the Company
 by reason of voting power, and their relatives:
 
 Mrs. Meher Pudumjee – Chairperson
 
 Mrs. Anu Aga        – Director
 
 Mr. Pheroz Pudumjee – Director
 
 D) Enterprise, over which control is exercised by individuals listed in
 C above
 
 Thermax Social Initiative Foundation
 
 E) Key Management Personnel:
 
 Mr. M S Unnikrishnan – Managing Director
 
 12.  Disclosure, as required by AS - 28 (Impairment of Assets)
 
 In terms of Accounting Standard 28 ( there was no impairment loss on
 assets during the year under report.)
 
 13.  Disclosure in relation to in-house Research & Development (R&D)
 expenses and fixed assets.
 
 A) Details of R&D Revenue Expenses incurred during the year :
 
 Expenses included in respective category of Schedule 13, 14, 15 & 16,
 incurred for the purpose of in-house Research and Development activity.
 
 14.  The Ministry of Corporate Affairs, Government of India, vide
 General Circular No. 2 and 3 dated 8th February 2011 and 21st February
 2011 respectively has granted a general exemption from compliance with
 section 212 of the Companies Act, 1956, subject to fulfillment of
 conditions stipulated in the circular. The Company has satisfied the
 conditions stipulated in the circular and hence is entitled to the
 exemption.
 
 15.  Previous years figures have been regrouped wherever necessary to
 conform to this years classification.