1. The Company has a practice of revaluing its certain assets at
 certain intervals. On the basis of valuation reports submitted by the
 approved valuers, certain fixed assets comprising Land, Building, Plant
 & Machinery, Roads, Water Works, etc., were revalued at Market
 Value/Current Replacement cost as at 01-10-2007 as follows:
 
 The depreciation for the year ended 30-09-2011 on Revalued Assets has
 been calculated on Straight Line Method on their residual technical
 life assessed by the Valuers. However, the amount of Depreciation
 charged to Profit & Loss Account is as per Schedule XIV to the
 Companies Act, 1956, on the cost of the assets.
 
 2.  State Government has acquired some of the lands at Walchandnagar.
 The District Court has given an award of Rs 285 Lakhs including interest
 in favour of the Company and has allowed the Company to withdraw the
 amount on furnishing of Bank Guarantee and Security Bond. However, as
 the matter is in appeal, the award is not accounted for as sale.
 
 3.  CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
 
                                    As at 30.09.2011   As at 30.09.2010
                                        Rs in Lakhs         Rs in Lakhs 
 
 (i) Counter Guarantees by the 
 Company in respect
 of guarantees given by the banks 
 (including guarantee on account of
 erstwhile Machine Tool Division of
 Rs 3.55 Lakhs).                          31,016.92          29,644.15
 
 (ii)  Estimated amount of Contracts 
 remaining to be executed on 
 Capital Accounts & not provided 
 for (Net of Advance).                       137.29              95.20
 
 (iii) During the previous year, a customer has invoked Bank Guarantee
 of Rs 700 Lakhs on the grounds of alleged non performance of the
 Contract. The Company has disputed this claim since the subject Bank
 Guarantee was conditional and in the opinion of the Company, the
 condition precedent for it to become operative was not fulfilled. The
 Company has invoked Arbitration Proceedings as per the provision of the
 Contract, which has already commenced, for recovery of this amount
 together with the contractual dues of Rs 744 Lakhs owed by the customer,
 both shown under the head Sundry Debtors in the Financial Statements.
 Based on the facts of the case the Company is of the opinion that it
 has a good case on merits.
 
 The matter is sub-judice and the Company has been legally advised that
 it has a case worth pursuing. In view of the forgoing, no provision is
 considered necessary at this stage.
 
 (iv) (a) Demand of NA Tax of Rs 86.61 Lakhs is raised by Tahshildar,
 Indapur (Previous year Rs 86.61 Lakhs) out of which Rs 20 Lakhs is paid
 under protest by the Company. No provision has been made in the
 accounts as the Company has not accepted the liability and the matter
 is sub-judice.
 
 (b) The Central Excise Authorities have raised a demand of Rs 266.19
 Lakhs (Previous year Rs 266.19 Lakhs) (Net of CENVAT reversal and
 payment) denying the exemption from the excise duty on non-conventional
 energy devices/ systems supplied by the Company. The Company has
 disputed the demand and has preferred an appeal which is pending before
 ''CESTAT, Mumbai''. On the basis of legal opinion, the Company does not
 expect any liability.
 
 (c) The Central Excise Authorities have raised a demand of Rs 82.45
 Lakhs (Previous year Rs 79.98 Lakhs) on bought out items supplied for
 Centrifugals, which has already suffered duty at manufacturers end. The
 Company has disputed the demand and has preferred an appeal which is
 pending before Supreme Court, Delhi. On the basis of legal opinion, the
 Company does not expect any liability.
 
 d) During the current year the Sales Tax Authority, Maharashtra has
 raised demand of Rs 159.83 Lakhs as per section 6(2) of the Central
 Sales Tax Act, 1956. The Company has disputed the demand and has
 preferred an appeal before The sales tax Appellate Commissioner. On the
 basis of legal opinion the Company does not expect any liability.
 
 4. Pursuant to the approval of the shareholders at the Extra Ordinary
 General Meeting held on 23.11.2006 and in accordance with SEBI (DIP)
 Guidelines, the Company had issued 80,00,000 fully paid up Equity
 shares to the promoters on preferential Basis, post conversion of
 8,00,000 convertible warrants and received the total amount of Rs 5,072
 Lakhs. Out of these Rs 1,516 Lakhs (Previous year Rs 1,272 Lakhs) has
 been utilized for capital expenditure, Rs 2,780 Lakhs (Previous Year Rs
 2,780 Lakhs) for working capital and the balance amount of Rs 776 Lakhs
 (Previous year Rs 1,020 Lakhs) is invested in Mutual Funds.
 
 (iii) The nature of products under Heavy Engineering Division is such
 that it is not possible to evaluate the quantitative data in exact
 terms.
 
 5.  The figures for the Previous year are regrouped wherever
 necessary.