1 SEGMENT
 
 The Company has two reportable business segments, namely, i) Electro -
 porcelain Products and ii) Turnkey Projects.
 
 2 REGROUPING OF FIGURES
 
 The previous year''s figures have been regrouped and rearranged
 wherever necessary.
 
 The 925,000 Non-convertible, cumulative and Redeemable Preference
 Shares of Rs 100/- each fully paid up bearing a coupon rate of 5% for
 the initial four years and thereafter @ 7.5% till redemption, allotted
 to Schroder Credit Renaissance Fund Ltd. and Schroder Credit
 Renaissance Fund L.P. on 3rd 0ct.2006 are to be redeemed on or before
 the end of 7 years from the issue date, i.e., 03 Oct. 2013.
 
 350,000 Non-convertible, cumulative, Redeemable Preference Shares Rs
 100/- each fully paid up have been allotted to Vensunar (P) Ltd. On
 13.07.2009 at a coupon rate of 10% to be redeemed on or before
 28.02.2013.
 
 The above Term Loans and Current maturities of long term loans are
 secured by the :
 
 First Charge on the company''s immovable and movable fixed assets,
 present and future:
 
 i) In respect of the Term Loans availed and outstanding to banks,
 aggregating to Rs 1,166.21 Million which shall rank pari passu among
 them.
 
 ii) In favour of the concerned Bankers on specific assets acquired from
 the specific loans secured from them under the suppliers'' credit
 facility for which bills have been co-accepted by these banks.
 
 iii) In respect of a Term loan of Rs 250 Million, charge is yet to be
 created.
 
 Terms of Repayment
 
 The balance outstanding of Rs 77 million availed in Oct 2008 is
 repayable in equal quarterly installments of Rs 11 million each, starting
 from June 2011.
 
 The balance outstanding of Term Loan of Rs 457.70 million is repayable
 in 16 quarterly installments starting from Dec 2011.
 
 The balance outstanding in the Foreign Currency loan equivalent to US $
 10.79 Million is repayable in quarterly installments starting from Sept.
 2012.
 
 The balance outstanding in theTerm loan of Rs 20.79 Million is fully
 repayable in Sept. 2012.
 
 The balance outstanding in the Term loan of Rs 43.17 Million is fully
 repayable in Sept. 2013.
 
 The balance outstanding in the Term loan of Rs 8 Million is repayable in
 quarterly installments of Rs 2 Million each commencing from Oct. 2011.
 
 The Term Loan of Rs 250 million is repayable fully in June 2012.
 
 Loans from Banks, both for Chennai Unit and Vizag Unit, availed on Cash
 Credit, Packing Credit,WCDL and FCNRB are secured by the Hypothecation
 of Stocks of Raw Materials, Stores, Spares (not relating to Plant and
 Machinery), Work-in-Progress, Finished Goods, Book Debts and
 Documentary Bills and further secured by a Second Charge on the
 immoveable and moveable fixed assets of the respective Units of the
 Company ranking pari-passu among themselves for the units for which
 facilities have been extended based on the joint/individual
 documentation executed, subject to the first pari-passu charge created
 in favour of the Company''s term lenders in favor of -
 
 i) The Bankers under Consortium arrangement for the Working Capital
 facilities sanctioned by them for Chennai Unit.
 
 ii) The Bankers for the Working Capital facilities sanctioned for Vizag
 Unit.
 
 NOTE 3                                                (Rs in Millions)
 
 CONTINGENT LIABILITIES AND COMMITMENTS 
 NOT PROVIDED FOR :                        THIS YEAR    PREVIOUS YEAR
 
 (I) Contingent Liabilities
 
 (a) Guarantees                               842.24           922.65
 
 (b) Letters of Credit in favor of 
     suppliers of Raw materials, Capital       40.43            60.51 
     Goods, etc. excluding the value of 
     materials received and bills
 
     accepted there against
 
 (c) Corporate Guarantees issued               50.80            62.39
 
 (d) Customs Duty on Bonded Materials           6.28             5.86
 
 (e) Tax disputes
 
 i) Excise and Service tax                      0.07             0.21
 
 ii) Income Tax                                 7.97             2.65
 
 (f) Arrears of dividend for the year 
     on Cumulative Redeemable                  12.13               -
     Preference Shares at the 
     contracted rates
 
 (II) Commitments
 
 (a) Estimated amount of contracts 
     remaining to be executed                   4.47            4.44 
     on capital account and not 
     provided for -
 
 (b) In respect of Voluntary Retirement 
     Scheme offered by the                     13.53             -
     company, the amount payable to 
     eligible employees who have
 
 opted for the deferred payment as set out in the scheme for the coming
 years
 
 Notes to Segment Reporting
 
 1 Business Segments:
 
 The Company has considered business segment as the primary segment for
 disclosure. The business segments are: Electro-porcelain products and
 Turnkey Projects.
 
 2 Geographical Segments:
 
 The geographical segments considered for disclosure are: India and Rest
 of the world.
 
 3 Segmental assets includes all operating assets used by respective
 segment and consists principally of operating Debtors, Inventories and
 Fixed Assets net of allowances and provisions. Segmental liabilities
 include all operating liabilities and consist primarily of Creditors
 and accrued liabilities. Segment assets and liabilities do not include
 income tax assets and liabilities.
 
 Confirmation of balances in respect of debtors, creditors and advances
 have not been received in some cases.
 
 The Company''s shares are listed in Mumbai and National Stock
 Exchanges. The listing fees there against have been paid up to date.
 
 Figures have been stated in Rs Million.