1.  Particulars of Security provided for loans are as under: - Term
 Loans from Banks:
 
 a) Term loan of Rs.370 lakhs from Dhanlaxmi Bank Ltd. is secured by
 hypothecation by way of (1) first charge on the plant and machinery,
 tools and accessories in respect of specific assets financed by the
 bank, namely (a) 2 x 230 KW Wind Mills situated at Dharapuram Taluk,
 Erode, Tamil Nadu, (b) Machinery and equipment in respect of Solar
 Water Heater Unit at K.G Chavadi, Coimbatore; and (c) Office cum godown
 building at Mansoorabad Village, Renga Reddy District, Andhra Pradesh;
 and (2) equitable mortgage of 4 acres of land relating to the Wind
 Mills, at Erode, Tamil Nadu and 2091.5 sq. meters of land at
 Mansoorabad Village in Andhra Pradesh.
 
 b) Term loan of Rs.100 lakhs from Dhanlaxmi Bank Ltd. is secured by way
 of equitable mortgage of 106.424 cents of land at Edappally South
 Village, Kanayannur Taluk, Vennala Desom, together with godown with an
 area of 1578.40 sq meters.
 
 c) Term loan of Rs.1,000 lakhs from State Bank of India is secured by
 way of (a) charge over the registered Trade Mark V-GUARD; and (b)
 exclusive charge over (i) Plant and Machinery in the trading division
 having establishments at Ernakulam, Bangalore, Coimbatore and
 Hyderabad; (ii) Factory building and plant and machinery at Solar Water
 Heater Division; (iii) 113.293 cents of land at High School Road,
 Vennala; (iv) 1306 cents of land at K.G Chavadi, Coimbatore; and (v)
 12.52 cents of land at Mettupalayam Road, Coimbatore. Balance
 outstanding in this facility as on 31.03.2011 is Rs. Nil (Previous
 Year: Rs.120 lakhs).
 
 d) Term loan of Rs.800 lakhs from State Bank of India is secured by way
 of (a) charge over the assets acquired / constructed out of bank
 finance, viz., corporate office building at Vennala; (b) extension of
 equitable mortgage over 113.293 cents of land at High School Road,
 Vennala, 1306 cents of land at K.G Chavadi, Coimbatore, 12.52 cents of
 land at Mettupalayam Road, Coimbatore, and (c) extension of charge over
 Plant and Machinery in Trading Division and Solar Water Heater Division
 and factory building of Solar Water Heater Division. The loan is
 further secured by personal guarantees of Sri. Kochouseph
 Chittilappilly, Managing Director and Smt. Sheela Kochouseph, wife of
 Sri. Kochouseph Chittilappilly.
 
 e) Term loan of Rs.200 Lakhs from Punjab National Bank is secured by
 way of mortgage of 622.50 Cents of land at Survey No.37/2, 37/3 and
 37/4 together with godown building at Thenkurissi Village near NH-47
 Junction, Palakkad. Balance outstanding in this facility as on
 31.03.2011 is Rs. Nil (Previous Year: Rs. Nil).
 
 Medium Term Loans from Banks:
 
 Medium term loans from Dhanlaxmi Bank Ltd. and HDFC Bank Ltd. are
 secured by way of hypothecation of vehicles financed by the lender.
 
 Medium Term Loans from Others:
 
 Medium term loan from Cisco Systems Capital India Pvt. Ltd. is secured
 by way of hypothecation of fixed assets financed by the lender.
 
 Working Capital Loans from Banks:
 
 Working capital loans from State Bank of India, Dhanlaxmi Bank Ltd.,
 Citibank N.A., HDFC Bank Limited and Standard Chartered Bank are
 secured by hypothecation by way of pari passu first charge on all
 current assets of the Company, both present and future, including stock
 of goods, book debts and all other movable assets including document of
 title to goods and third pari-passu charge on all fixed assets of the
 Company including immovable properties.
 
 2.  Company has availed supplier bill-discounting facilities from Small
 Industries Development Bank of India (SIDBI), State Bank of India,
 Standard Chartered Bank and Dhanlaxmi Bank Ltd. The security details of
 these facilities are as follows:
 
 a) The limit with SIDBI is secured by a second charge by way of
 hypothecation of all the movable assets including movable plant,
 machinery, spares, tools, accessories, equipments, computers etc., both
 present and future, of the Company and personal guarantee of Shri
 Kochouseph Chittilappilly, Managing Director of the Company.
 
 b) The limits with State Bank of India, Standard Chartered Bank and
 Dhanlaxmi Bank Ltd.  are secured by way of extension of security
 provided for working capital loans.
 
 3.  Contingent Liabilities:
 
                                                           (Rs. in lakhs)
 
                       Particulars                  2010-11     2009-10
 
 (a) Disputed sales tax matters, pending in appeal   127.62     125.35
 
 (b) Claims against the Company not acknowledged 
     as debts                                          7.05        -
 
 (c) Disputed income tax matters, pending in appeal    4.53        -
 
 (d) Open letters of credit for import / inland 
     purchases                                       627.33     343.72
 
 4.  Estimated amount of contracts remaining to be executed on capital
 amount and not provided for (net of advances): Rs.1,572.12 lakhs.
 (Previous Year: Rs.343.96 lakhs).
 
 Note: The Ministry of Corporate Affairs, Government of India, vide
 Notification No. S.O. 301(E) dated 8th February 2011, has exempted
 manufacturing / multi-product companies from disclosing particulars of
 goods which form less than 10% of the total value of turnover under
 clauses 3(i)(a) and 3(ii)(a) of Part II of Schedule VI of the Companies
 Act, 1956. The Company has accordingly disclosed quantitative
 particulars of goods which constitute 10% or more of the turnover for
 the current year and / or previous year.
 
 (b) Particulars in respect of Opening Stock, Purchases and Closing
 Stock of Traded Goods
 
 Note: The Ministry of Corporate Affairs, Government of India, vide
 Notification No. S.O. 301(E) dated 8th February 2011, has exempted
 trading / multi-product companies from disclosing particulars of goods
 which form less than 10% of the total purchase under clauses 3(i)(a)
 and 3(ii)(b) of Part II of Schedule VI of the Companies Act, 1956. The
 Company has accordingly disclosed quantitative particulars of goods
 which constitute 10% or more of the total purchases for the current
 year and / or previous year.
 
 Note: The Ministry of Corporate Affairs, Government of India, vide
 Notification No. S.O. 301(E) dated 8th February 2011, has exempted
 manufacturing / multi-product companies from disclosing particulars of
 goods which form less than 10% of the value of raw material consumption
 under clause 3(ii)(a) of Part II of Schedule VI of the Companies Act,
 1956. The Company has accordingly disclosed quantitative particulars of
 goods which constitute 10% or more of the value of raw materials
 consumed during the current year and / or previous year.
 
 - Perquisites have been valued in accordance with the Income Tax Rules,
 1962.
 
 - The above remuneration is within the limits specified u/s 198 of the
 Companies Act, 1956.
 
 - Provisions for / contributions to employee retirement benefits, which
 are based on actuarial valuations done for the Company as a whole, are
 excluded from the above.
 
 5.  Notes on Cash Flow Statement:
 
 a) The Cash Flow Statement has been prepared under the ''indirect
 method'' specified in Accounting Standard – 3 Cash Flow Statements
 notified under Companies (Accounting Standards) Rules, 2006.
 
 b) Cash and Cash Equivalents includes (a) fixed deposits of Rs.207.05
 lakhs (Previous Year: Rs. 85.25 lakhs), given as security for guarantee
 and letter of credit facility extended by State Bank of India and
 Dhanlaxmi Bank Ltd.; and (b) unclaimed dividends amounting to Rs.13.33
 lakhs (Previous Year: Rs. 8.50 lakhs) lying in current accounts, not
 available for use by the Company.
 
 6.  Employee Benefits:
 
 The Company has provided the following benefits to its employees during
 the year:
 
 I. Defined Contribution Plan – Provident Fund:
 
 During the year, the Company has recognised the employer''s contribution
 to Employees Provident Fund Organisation amounting to Rs.42.95 lakhs
 (Previous Year: Rs. 27.34 lakhs) as part of Employee Costs in Schedule
 17 of the financial statements.
 
 II.  State Plans:
 
 a) Employer''s contribution to Employees'' State Insurance Scheme.
 
 b) Employer''s contribution to Employees'' Pension Scheme, 1995.
 
 7. Segment Disclosures:
 
 a) Business segments have been identified as per Accounting Standard 17
 – ''Segment Reporting'' taking into account the product portfolio,
 internal reports, organisation structure, etc.
 
 b) The Company has considered business segment as the primary segment
 for the purpose of disclosure.
 
 c) Types of products in each Business Segment:
 
 d) The Segment Revenues, Results, Assets and Liabilities include
 amounts identifiable to specific segments and amounts allocated to all
 segments on a reasonable basis.
 
 8. The amount of unclaimed dividends lying in separate bank accounts
 as at the Balance Sheet date is Rs.13.33 lakhs (Previous Year: Rs. 8.50
 lakhs). There is no amount due and outstanding as at the Balance Sheet
 date to be credited to the Investor Education and Protection Fund.
 
 9.  Previous year''s figures have been re-grouped/re-classified
 wherever necessary to conform to classification for the current year.