1. In accordance with past practice of the company, followed
 consistently, Leave Salary, Leave Travel Allowances & Interest on
 Security Deposit with Electricity Board have been accounted for on Cash
 basis.
 
 2. Contingent liabilites not provided for:            (Rs. in Lacs)
 
 Sl No             Types                  Year 2010         Year 2009
 A.     Guarantee & L/C outstanding        55.58             45.98
 A.a    Against Which FDR pledge
        with bank                           5.46              5.52
 B.     ESI                                36.81             36.81
 C.     Sale Tax demand disputed            6.64              4.17
 D.     Service Tax and Excise
        Duty demand disputed                7.94              7.94
 E      Terminal Tax                       11.37              9.30
           
   
 
 3. Additional information pursuant to the provision of paragraphs 3, 4C
 and 4D in part II of Schedule VI to the companies Act, 1956.
 
 *Installed capacity being technical matter has been certified by the
 Management and accepted by us.
 
 Including 73.670 MT (279.150)for value Rs 46.21 laces( 89.88) lying
 with customers for approval as at the end of year and valued at cost
 plus excise duly thereon.
 
 4.  Sundry Debtors, loans & Advances and Sunday Creditors are subject
 to confirmation. Sundry Creditors have not been classified into SSI and
 Non -SSI creditors due to non-availability of data. I lie Company is in
 process of collecting the information relating to nature of sundry
 creditors
 
 5.  The Company has commenced the process of ascertaining the
 registration status of the suppliers under the Micro, Small and
 Medium Enterprise Development Act 2006. In absence of necessary
 details as on the Balance sheet date the information required under the
 said Act could not be compiled and disclosed.
 
 6. The company is covered under Group Gratuity Scheme of the LIC along
 with its associates companies. However no provision has been made
 during the year.
 
 7. Local Municipal Authority Nagar Nigam Bhilai, had introduced
 terminal tax during the year 1999-2000 and have demanded a sum of Rs.
 19,42,836/-from the company for the period from 01/05/1999 to
 31/03/2010. (Which includes Rs 3,31,432 /-for the year 2009-2010 and
 provided by the company) The company has filed a case with Honourable
 High Court of Chhattisgarh in the year 2003 against the order and the
 court has directed to pay 50% of the terminal tax and the company has
 paid under protest a sum of Rs 805702 /- up to 31/03/2010 (including Rs
 NIL for the year 2010) and the net amount outstanding as on 31/03/2010
 is Rs 11,37,134/-.
 
 8. Pursuant to the Accounting Standards (AS-22) issued by the ICAI,
 decrease in deferred tax liability amounting to Rs.8,57,000/-have been
 adjusted through profit & loss account. The major components of
 deferred tax assets and liabilities as at 31sl March 2010are as
 follows: -
 
 (A) Company controlled by Directors/relatives are:-
                     
 i) Bhilai Engg Corporation Ltd.
 
 ii) BEC Strips Ltd
 
 iii) BEC Impex International Pvt. Ltd.
 
 (B) Associate concerns are
 
 i) Dreams (proprietary concern)
 
 (C) Name of the key Management Personnel
 
 (i) Shri Arvind  Kumar Jain
 
 (ii) Shri Rajeev Jain
 
 (iii) Shri Ashish Jain
 
 (iv) Sri S.R.Varadarajan
 
 (D) Relatives of Key management Personnel
 
 (i) Mrs Kanika Jain (ii) Mrs Roopa Jain (iii) Mrs Vimla Varadarajan
 
 9.  Company''s claim for sales tax deferment incentive has been
 rejected by the sales tax authorities. Company has gone into appeal
 before Appellate authority.  The management is hopeful to get sales tax
 deferment incentive.
 
 10.  The company had contributed an amount of Rs.68,41,790/-
 (equivalent to 60,000 Omani Rials) towards 15% of the share capital of
 the United Industrial Services Company LLC (The name of the Joint
 Venture company) PB no 1040 PC 112 RUWI Sultanate of OMAN which is
 shown in the Balance sheet as Investment in Joint Venture. The Joint
 venture company has allotted shares worth 60000 RO (equivalent to
 Rs.68,41,790 /-).
 
 11.  Finished goods lying with customers on approval basis have been
 valued inclusive of excise duty. The company has not considered the
 liability of excise duty in valuation of finished goods in company''s
 go down at the year-end. Had it been so included, the value of
 inventory as well as current liability would have been higher by equal
 amount and thus there would have no impact on the profitability for the
 year.
 
 12. The Company had taken Key man insurance policies on the life of
 its Directors Shri Arvin Jain & Shri Hashish Jain. In the year 2007-08
 the Company discontinued the slid policies and assigned the same in
 favor of its Directors on the condition that trio will render services
 to the Company at least for 5 years i.e. up to 31st March 2010 In case
 they disassociate before the said period they will proportionately
 compensate the Company leas debited Mb amount as a salary in tin:
 account of Mi Anvil Jain Us Rs,( 20,560,000) and Mi Assisi join Rs
 6,97,162/-.
 
 13. Previous year''s figures have been regrouped / rearranged or re-cast
 in conformity with current year.